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Telecommunications remain at the core of running a business, even in an age where the average office worker receives over 120 emails a day. From cloud services to video calls, every organisation relies on fast, reliable, and secure networks. But as businesses expand across multiple sites, traditional internet connections can struggle.
That’s where Multiprotocol Label Switching (MPLS) has historically stepped in; offering businesses a way to prioritise critical traffic and keep communication flowing smoothly through their telecoms infrastructure. But with the rise of SD-WAN, is MPLS still worth it in 2025?
This article will offer a simple MPLS definition, while also explaining the benefits of integrating it into your business.
What is Multiprotocol Label Switching in computer networks and telecoms?
MPLS (Multiprotocol Label Switching) is a routing technique that speeds up and controls how data moves across a network. Instead of relying only on IP addresses, MPLS uses labels and pre-defined routes called Label Switched Paths (LSPs).
MPLS (Multiprotocol Label Switching) is a networking technology that directs data packets through a network using short path labels instead of long IP routing lookups. Unlike traditional network protocols that depend on destination network addresses, MPLS uses a Label Switch Router (LSR) to forward traffic efficiently through pre-defined routes called Label Switched Paths (LSPs).
This makes it possible to:
- Prioritise traffic (e.g. voice calls over general browsing).
- Improve reliability with predictable routing.
- Enhance security by avoiding the public internet.
For businesses with multiple offices or data-heavy operations, MPLS has long been a go-to for keeping connectivity consistent and secure.
Benefits of MPLS
Because traffic is prioritised, MPLS offers robust traffic management capabilities. This allows businesses to ensure that users relying on latency-sensitive applications like VoIP don’t experience dropped calls. Centralised routers and streamlined technologies make it easier for management teams to monitor performance and maintain network security.
- Scalability for growth: New offices can be added into one centralised network.
- Performance: Low latency makes it ideal for real-time applications (VoIP, video conferencing).
- Security: Routes traffic over private paths rather than the public internet.
- Centralised control: Easier to manage than multiple separate networks.
- Integration with cloud services: MPLS can be combined with platforms like Microsoft Azure for private, reliable cloud connectivity.
MPLS vs. SD-WAN: What’s the Difference?
While MPLS uses private, pre-defined paths to route data securely and reliably, Software-Defined Wide Area Networking (SD-WAN) takes a different approach. Instead of relying on fixed private circuits, SD-WAN uses software to route traffic dynamically over multiple connections, such as broadband, fibre, 4G or 5G.
MPLS vs SD-WAN: Which Do You Need?
In recent years, SD-WAN (Software-Defined Wide Area Networking) has gained popularity as an alternative due to cost, but it comes as a sacrifice to performance, reliability and security. Many UK businesses now use a hybrid approach: MPLS for mission-critical apps, SD-WAN for general connectivity.
| Feature | MPLS | SD-WAN |
|---|---|---|
| Cost | Higher (premium leased lines) | Lower (uses broadband/4G/5G) |
| Performance | Excellent for critical apps | Good, with dynamic routing |
| Security | Private, highly secure | Encrypted, but over public internet |
| Flexibility | Rigid, fixed paths | Highly flexible, adapts in real time |
| Best for | Large enterprises with strict performance needs | SMEs & multi-site businesses needing agility |
MPLS in the UK: Providers & Market
MPLS solutions are typically offered by large service providers such as BT, Vodafone, Gamma, and Colt, and smaller companies who often provide better value for money. These vendors often work with partners to deliver tailored solutions that align with the needs of their customers and clients. Contracts usually include detailed SLAs covering availability, latency, and network resilience. Pricing varies depending on:
- Bandwidth requirements.
- Number of sites.
- Service Level Agreements (SLAs).
Ofcom continues to regulate telecoms services to ensure fair pricing and reliability, while many providers now bundle MPLS with SD-WAN to offer businesses more flexibility.
Security & Reliability
By avoiding the public internet, an MPLS network reduces exposure to attacks, ensuring strong network security. Because it runs over private circuits, it’s particularly suited to sectors like government, healthcare and finance, where data protection of sensitive information is critical
Is MPLS Right for You in 2025?
Choose MPLS if your business or company:
- Runs latency-sensitive applications like VoIP or video conferencing.
- Needs rock-solid SLAs with guaranteed uptime.
- Operates in industries where security and compliance are top priorities.
Consider SD-WAN if you:
- Need lower costs and flexibility.
- Operate across multiple small sites or remote teams.
- Want to leverage broadband and 5G for agility.
Final Thoughts
In practice, many businesses deploy a hybrid architecture: MPLS for advantages like low latency and security, alongside SD-WAN for flexibility. This combined solution ensures enterprises can scale effectively while giving users the performance they expect.
The key is to choose a provider that understands your industry, offers strong support, and can scale with your business growth.
MPLS FAQs
What is MPLS in simple terms?
A routing method that uses labels instead of IP addresses to move data quickly, securely, and reliably.
Is MPLS still relevant in 2025?
Yes, especially for businesses that need guaranteed performance, low latency, and private connections. Many pair it with SD-WAN.
What’s the difference between MPLS and SD-WAN?
MPLS uses private, fixed paths for maximum reliability, while SD-WAN routes flexibly across broadband/4G/5G for cost savings and agility.
Who are the main MPLS providers in the UK?
BT, Vodafone, Virgin Media Business, Gamma, and Colt are some of the biggest UK MPLS providers.
Is MPLS more secure than SD-WAN?
MPLS is inherently private and highly secure, while SD-WAN uses encrypted connections over the public internet. Both can be secure when configured correctly.
