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For two location networks within a few hundred miles of each other, point-to-point quotes are often less than MPLS. Point-to-point circuits are almost never managed (equipment provided and maintained) by providers. Point-to-point quotes almost never include the routers, which are needed at each end of the circuit. For multiple location networks, MPLS is far more functional, redundant, and less expensive than a network which includes a series of point-to-point lines. With point-to-point networks; management, configuration, and maintenance are the responsibility of the customer. MPLS networks, however, are pretty much turn-key. In most cases, the complete network is setup and maintained by the provider with no charge for installation or equipment. Point-to-Point lines are most commonly comprised of T1, T3, or OC circuits. MPLS networks can be comprised of a combination of virtually any bandwidth including T1 or faster, at any location on the network. This includes T1, bonded T1, fractional DS3, or full DS3. As dedicated circuits, point-to-point circuits are always connected and are billed at a flat monthly rate. Point-to-Point quotes are higher than common T1 because point-to-point lines require local loops on each end, plus the distance between each of the two locations. As with all T1 services, maximum bandwidth can be utilized in both directions simultaneously. Applications which are best served by point-to-point include: extremely secure file transfer, voice (telephone), audio and video conferencing, and high quality video broadcast. Point-to-point service is for companies which need the best possible performance and security between two locations. If a network has more than two locations, and any-to-any connectivity is desired, then MPLS is a favorable option.
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