Enterprise customers around the world are replacing legacy private line, Frame Relay, and ATM wide area networks with Ethernet VPLS and MPLS IP VPN services.
Ethernet VPN services are generally more cost effective than MPLS IP VPN services for capacity requirements above 50 Mbps, and are most appropriate for linking high-capacity headquarter sites and data centers, according to TeleGeography research.
But analyst Rob Schult said that dependence on Ethernet local access and the relatively slow rollout of Ethernet across MPLS PoPs means that Ethernet VPN solutions are not yet available in as many cities.