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Multiprotocol Label Switching is a new and innovative development in the field of WAN
protocols, and is touted as a solution that combines the best aspects of Layer-2 functionality
(switching) and Layer-3 functionality (WAN routing). MPLS was introduced as a way of imposing
traffic control and high-speed connection-oriented services on a regular IP internetwork, with
minimal changes to the network͛s actual physical hardware.

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One of the characteristics that allow MPLS to reach such high network transfer speeds (Recent
upgrades to the USA MPLS backbone increased speeds to 40Gbps, telecomengine.com) is its
method of creating a switched, virtual circuit between the two endpoints of the connection.
Typical routing decisions are used to establish the path through the MPLS core routers, but
once the path had been established the MPLS network gear behave like switches.

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This approach combines the intelligent path-making decisions of routing with the high speed of
switching. Due to this mixing of functionality, MPLS is often called a ͞Layer 2.5͟ protocol.

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After the switched circuit has been created and established, all the data packets for that
connection are assigned label identifiers and a Traffic Class value. The label provides
information detailing the established circuit to be traveled, and the traffic class specifies service
requirements for that packet (like identifying high-priority data such as real-time video).

When the labelled data packets enter a MPLS core or switching router, the label is removed and
checked against the router͛s list of established circuits. Core MPLS routers pre-register the
labels to be used at the time of circuit creation, and store these labels (along with the port
numbers for the next link in the circuit) in a Label Information Base. When the data packets
arrive, the router is able to quickly match the packet͛s label with one of the entries in its
database. It also checks the label͛s Traffic Class against sets of forwarding treatments, known
as Forward Equivalence Classes (FECs). If a that particular packet͛s traffic class signals that it is
high-priority data, it may be routed differently in order to meet its needs (sending live video
data down a more faster, more expensive link in order to assure reliable delivery, for example).
This feature allows MPLS to ensure Quality of Service for differing data types.

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Once the label identifier has been matched to a Label Identification Base entry and the Forward
Equivalence Class has been determined, the router assigns a new label to the packet
(containing the information for the next node on the circuit) and forwards it to the appropriate
port. No decapsulation is performed and no forwarding decisions are made: all network-path
decisions were calculated when the circuit was being established. This approach requires less
router horsepower, resulting in a lower overall transit time for the packet and increased
network speed.

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