Reducing Latency: The Role of MPLS Core Networks in Business Connectivity

Understanding latency and why it matters for business

Latency is the time it takes for a packet of data to travel from its source to its destination. In an office LAN you might not notice it, but across a WAN latency can mean the difference between a seamless video conference and garbled speech. Applications such as real‑time trading platforms, telemedicine and interactive collaboration require packet‑based transport with minimal delay. Even everyday services like cloud‑based CRM systems or hosted PBX calls can feel sluggish when delays mount.

Two main factors influence latency: distance and routing. The farther packets travel and the more routers they encounter, the longer it takes to deliver data. Traditional packet‑switched networks rely on hop‑by‑hop routing decisions; each router inspects the destination IP address and independently determines the next hop. Variations in routing tables and congestion can result in packets following different paths or getting rerouted in mid‑stream. This unpredictability is particularly troublesome for real‑time applications, which require consistent quality of service (QoS). Businesses therefore need predictable paths across the core network that keep latency low and ensure high availability.

What is MPLS?

Multiprotocol Label Switching (MPLS) is a routing technique designed to provide predictable performance. This protocol, sometimes spelled multi protocol label switching, attaches short labels to each packet instead of forwarding packets based solely on destination IP. These MPLS labels indicate a predetermined label‑switched path (LSP). Routers in the MPLS network, called label switch routers (LSRs), forward packets by examining the label, not the IP header, which streamlines the process. The device at the network edge that adds and removes labels is known as the label edge router (LER).

According to the Wikipedia entry on MPLS, the technique directs data from one node to the next based on labels rather than network addresses. It can encapsulate packets of various network protocols and supports access technologies ranging from T1/E1 to asynchronous transfer mode (ATM) and DSL. MPLS operates at a layer sometimes described as “2.5” because it sits between OSI Layer 2 (data link) and Layer 3 (network).

Originally developed to speed up packet forwarding, MPLS now provides more nuanced benefits such as traffic engineering, quality of service (QoS) guarantees and virtual private networks (VPNs). Hardware‑based forwarding has eliminated the need for MPLS to overcome slow route lookups; today its value lies in giving network operators control over path selection and the ability to support multiple service models. By defining forwarding equivalence classes (FECs) and establishing LSPs, carriers can map different types of traffic onto specific tunnels, ensuring that critical services receive priority and avoid congested routes.

How MPLS differs from traditional routing

To appreciate why MPLS improves latency, it helps to contrast it with normal IP routing. In a typical IP network, each router makes an independent decision based on its current routing table. Even packets from the same session may traverse different paths if routing tables change between transmissions. MPLS sets up predetermined network paths; packets are assigned to a class and follow the same path every time. By avoiding per‑hop decision making, MPLS reduces jitter and ensures that packets for latency‑sensitive applications arrive in order.

MPLS also uses its own header. Each packet carries a short label stack in addition to the usual IP and transport headers. Routers simply swap labels and forward the packet along the LSP. Because routers only need to read the labels, MPLS can work with almost any protocol. These label stacks also enable nested tunnels. For example, an enterprise might run a Layer 3 VPN across a carrier’s MPLS core, while the carrier uses additional labels for MPLS traffic engineering to route around congestion.

However, MPLS is not the same as encryption or a VPN. While MPLS paths can be dedicated to a single organization, the traffic is not encrypted by default. For secure transport, businesses often combine MPLS with IPsec or other VPN technologies.

Why businesses still rely on MPLS

Despite the rise of SD‑WAN, MPLS remains a cornerstone of enterprise connectivity. One reason is reliability. MPLS enables network operators to engineer traffic based on constraints such as available bandwidth, latency, jitter or link utilization. By configuring LSPs with reserved resources, operators can deliver predictable performance for private networks. MPLS also supports label distribution protocols like RSVP‑TE and LDP that communicate path information and maintain network state. This ability to predefine routes and reserve resources makes MPLS ideal for applications that cannot tolerate delay or packet loss, such as VoIP, video conferencing and financial transactions.

Another reason is control. Many organizations prefer the deterministic paths and quality of service guarantees that MPLS offers. The Network Fun‑Times article points out that when people talk about buying an “MPLS circuit,” they usually refer to a specific use case of MPLS (Layer 3 VPN service) rather than the broader technology. MPLS itself is a flexible platform used by nearly every service provider, and it is not going away. Misunderstanding this distinction leads some to assume that MPLS is obsolete, when in reality it continues to power the modern Internet and many business networks.

Building a better network: MHO’s MPLS core

Carriers implement MPLS differently, and not all networks are equal. MHO Networks, headquartered in Englewood, Colorado, has built a fully‑meshed wireless Ethernet network with an MPLS core on top of a carrier‑class, point‑to‑point microwave backbone. This combination allows MHO to provide service even in locations where fiber and Ethernet over copper are not feasible. Because MHO’s network is wireless and FCC‑licensed, it is less susceptible to cable cuts and construction outages, offering greater resilience for business customers.

Features of MHO’s MPLS core network

MHO highlights several capabilities that set its network apart:

• Fast installation – MHO’s installation team can have services up and running quickly once roof access is secured. This speed is possible because MHO uses microwave links instead of waiting for fiber construction.
• Low latency – The wireless MPLS core supports VoIP and other latency‑sensitive applications. By avoiding congested terrestrial routes and using predetermined label‑switched paths, MHO keeps packet delays minimal.
• High reliability – Each dedicated Internet and Ethernet link is FCC licensed, ensuring stability and protection against interference. MHO offers an enterprise‑class service level agreement (SLA). The MPLS core network is designed for fast reroute and core redundancy.
• Scalable bandwidth – MHO can adjust bandwidth quickly, with most requests handled the same day or within minutes. Clients can scale their connections up or down without lengthy provisioning cycles.
• No data caps – Customers can utilize their network speeds without worrying about exceeding a cap.
• Customer support – If customers experience issues, MHO’s support team aims to restore service within two hours.

These features are particularly valuable for businesses that require consistent performance for real‑time applications. Companies in healthcare, manufacturing, financial services, education and other sectors rely on low‑latency connectivity to transmit large files, run remote diagnostics, operate unified communications and access cloud applications. MHO’s combination of a meshed wireless network and an MPLS core allows it to avoid the physical limitations of cable infrastructure while offering the deterministic performance associated with MPLS.

Why wireless matters

Many MPLS providers use fiber or leased lines for their core. MHO’s decision to build a microwave backbone offers several advantages. Microwave circuits can be deployed quickly compared to weeks or months for fiber. They can traverse rugged or urban environments where trenching is impractical. Because microwave links are directional and licensed, they provide high capacity and low interference. When combined with MPLS, this creates label‑switched paths that are both resilient and efficient. Businesses in remote or rapidly developing areas can get enterprise‑grade connectivity without waiting for fiber construction.

MHO’s wireless design supports diversity and redundancy. Clients can use multiple microwave paths or pair microwave with fiber for failover. If a fiber cut occurs, traffic automatically switches to the microwave path. The MPLS core monitors link states and reroutes traffic along alternate LSPs to maintain service. This kind of fast reroute is only possible when the core network supports MPLS traffic engineering and dynamic path selection.

Use cases and applications

Businesses adopt MPLS and services like MHO’s for a range of reasons:

1. Voice and video communications – Hosted PBX, SIP trunking and video meetings depend on low jitter and packet order. MPLS’s deterministic paths ensure voice quality, and MHO’s low latency backbone keeps conversations crystal clear].
2. Private cloud and data center access – Companies connecting to private data centers or cloud resources need secure, reliable links. MPLS VPNs provide segmentation and QoS, while MHO’s wireless core reaches sites where fiber is unavailable.
3. Financial transactions and trading – Millisecond delays can cost thousands of dollars. MPLS traffic engineering prioritizes critical transactions and routes them along the shortest path. MHO’s meshed network offers diverse, redundant paths to avoid outages.
4. Industrial and IoT – Manufacturing plants and IoT sensors generate constant data streams. An MPLS core can guarantee bandwidth and separate mission‑critical control traffic from bulk data flows. Wireless links can be deployed on construction sites or remote facilities where terrestrial circuits are limited.
5. Education and healthcare – Schools and hospitals rely on real‑time applications such as interactive classrooms and telemedicine. MHO’s network ensures that latency‑sensitive traffic receives priority and is delivered over the optimal path.

The future: combining MPLS and SD‑WAN

Network architectures evolve constantly. While MPLS remains essential for certain applications, many organizations are exploring SD‑WAN to complement or replace parts of their WAN. 

Rather than viewing MPLS and SD‑WAN as mutually exclusive, forward‑thinking organizations see value in integrating them. MHO’s MPLS core can serve as the high‑performance backbone for mission-critical services, while SD‑WAN can ride on top to optimize the last mile and provide dynamic path selection across multiple links. This hybrid approach offers the deterministic quality of MPLS with the agility of software‑defined networking.

Latency will always be a constraint in networking, but it doesn’t have to be a barrier to productivity. MPLS core networks provide deterministic performance by using labels to steer packets along pre‑defined, engineered paths. They support traffic engineering, QoS and VPN services, and continue to underpin the Internet and many enterprise WANs. While newer technologies like SD‑WAN offer flexibility, MPLS remains the gold standard for applications that demand low latency and reliability.

MHO’s approach demonstrates how combining a wireless microwave backbone with an MPLS core delivers unique benefits. Their network can be installed quickly, reaches locations where fiber is impractical, and provides the low latency and redundancy that businesses need. As organizations look to reduce latency and improve connectivity, partnering with a provider like MHO that understands both MPLS and modern networking trends can make all the difference.