With the emergence of multiprotocol-label-switching (MPLS), great strides have been achieved toward the goal of telecom convergence. In the past, telecom applications such as voice, internet, networking, and video conferencing have been treated as separate, commonly each needing their own source of bandwidth. This was expensive, because it is often far more costly to provide several relatively small bandwidth pipes, then it would be to provide one large pipe. Generally speaking, the larger the pipe, the less cost per megabit per second (mbps). Other issues which were frequent with a lack of convergence were that it was common for providers to specialize in one application, but not all. For this reason, it was required for businesses to be forced to deal with multiple providers, to obtain multiple types of service. Also, the business (customer) would need staff who could specialize in each application. For example, staff that specialized in coordinating the company phone system, staff that specialized in setting up internet access, and staff who specialized in setting up wide area and local networks (WANs and LANs). With a lack of convergence, capital costs were much higher as well. I.e., separate routers for connections to the WAN and LAN, separate routers for the internet, and separate equipment for connecting to the public switched telephone network.
With convergence, this is all improving for the business owner. Now, it is possible to obtain a completely managed system, which includes voice, internet, free long distance service, free toll free service, and soon to come, networking all on one bandwidth pipe, provided by one provider. This results in less expense for bandwidth, fewer company staff resources required to manage, and less expense for each application. With the emergence of dynamically allocated bandwidth, far greater efficiency is being achieved in bandwidth utilization as well. For example, not only can you have both voice and internet on the same T1, but you can now utilize all bandwidth for internet, when the phones are not in use.
At this point, MPLS is most affecting the convergence of communication within the communication network of each company. With MPLS, companies can now converge all applications, such as company location-to-location voice, routine data transfer, and video conferencing into one network. All can be transferred over one pipe, with any-to-any connectivity. With MPLS, class of service (CoS) prioritizes these applications so that those which are more sensitive to packet loss and latency receive priority over applications such as routine data transfer. For example, routine data transfer would not be allowed to compete directly with voice traffic. Routine data traffic is not sensitive to minor packet loss or latency, and therefore would be given a lower priority than voice or video traffic.
Converting from an out-dated frame relay or point-to-point network to a fully managed MPLS based network is an extremely painless process. In most cases, all installation is free, equipment and configuration is managed by the telecom provider, and the telecom provider takes full responsibility for monitoring the network 24 hours a day, seven days a week, and providing all maintenance for the network. All of this is usually provided for far less than the monthly cost of the existing network.
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