VPLS Virtual Private LAN Service: Costs, Benefits & Best Providers Quick answer:
VPLS (Virtual Private LAN Service) connects multiple business sites using a private MPLS backbone, creating a high-speed, secure, low-latency network that behaves like a single LAN.
UK businesses are increasingly looking for fast, secure, and reliable ways to connect multiple locations and VPLS (Virtual Private LAN Service) is a powerful networking solution that extends local area network (LAN) capabilities across geographically dispersed offices using high-speed, private MPLS connections.
💡 Want to improve network performance and security? VPLS could be the answer!
📢 For further information and pricing on leased lines, click here .
Contents
What is VPLS?
VPLS Virtual Private LAN Service Providers
How Do VPLS Work?
Benefits of VPLS for UK Businesses
Limitations of VPLS
VPLS vs. SD-WAN
How to Get VPLS for Your Business
Our Verdict on VPLS
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: January 2026
Key Takeaways
VPLS connects multiple business sites privately and securely.
Delivers exceptional low-latency performance.
Ideal for industries handling sensitive data.
More expensive than SD-WAN but more reliable.
Works best for multi-site enterprises requiring real-time connectivity.
What is VPLS? VPLS (Virtual Private LAN Service) is a networking technology that allows businesses to connect multiple offices as if they were on the same local area network (LAN), even if they are in different locations.
💡 How VPLs works:
✔️ Uses Layer 2 Ethernet technology to connect multiple sites over a service provider’s MPLS backbone.
✔️ Creates a private, secure network that functions like a LAN.
✔️ Enables low-latency, high-speed connectivity between offices, ideal for VoIP, video conferencing, and cloud services.
✔️ Reduces reliance on the public internet, improving security and performance.
VPLS Virtual Private LAN Service Providers
How Do VPLS Work? VPLS creates a virtual bridge between business locations using an MPLS backbone.
🔍 here’s a step by step guide on how it works:
Data link layer (Layer 2) communication – VPLS operates at Layer 2, meaning businesses can extend LAN-like services across a WAN.
Efficient traffic routing – VPLS assigns labels to data packets using MPLS technology, ensuring fast and secure routing between sites.
Multipoint-to-multipoint connectivity – Each location can communicate directly with any other site in the network, rather than relying on a central hub
Private and secure network – VPLS runs on a service provider’s MPLS backbone, ensuring strong security and isolation from public internet risks.
Benefits of VPLS for UK Businesses 1️⃣ Seamless connectivity
✔️ Connects multiple locations as if they were on the same LAN.
✔️ Faster, more efficient communication across offices.
2️⃣ Low latency & high performance
✔️ Operates at Layer 2, reducing network delays.
✔️ Perfect for real-time applications like VoIP, video conferencing, and cloud services.
3️⃣ Scalability
✔️ Easily add new locations to the network.
✔️ No need for major infrastructure changes.
4️⃣ Enhanced security
✔️ Operates on private MPLS networks, not shared with public internet.
✔️ Ideal for finance, healthcare, and legal industries handling sensitive data.
5️⃣ Cost-effective alternative to leased lines
✔️ Reduces the need for multiple expensive site-to-site VPNs.
✔️ Simplifies network management with a single infrastructure.
Limitations of VPLS
💰 Higherinitial costs – Requires dedicated MPLS circuits and setup fees.
📡 Service provider dependency – Network performance depends on MPLS provider quality.
☁️ Not optimised for cloud – VPLS is designed for site-to-site connectivity, not cloud-first strategies.
🌍 Geographical limitations – Availability depends on MPLS provider coverage.
VPLS vs. SD-WAN: Which is Right for Your Business?
Feature
VPLS SD-WAN
Reliability Very high – MPLS-basedHigh – Uses multiple connections
Performance Excellent for real-time applications Varies depending on internet quality
Flexibility Less flexible – Requires provider setupHighly flexible , easy to adjust settings
Cost More expensive upfront Lower costs , uses standard broadband
Cloud Compatibility Limited – Best for private networksHighly cloud-friendly
Verdict :
Choose VPLS for reliability, security, and real-time performance.
Choose SD-WAN if cloud integration, flexibility, and cost savings matter most.
How Much Does VPLS Cost in 2026? Pricing varies widely based on bandwidth, number of sites, and provider.
Bandwidth
Typical Monthly Cost (per site)
Best For
10–50 Mbps £350-£650
Small multi-site offices
100 Mbps £600-£900
Mid-sized UK businesses
1 Gbps £1,200-2,000+
High-performance enterprise networks
How to Get VPLS for Your Business 📍 Step 1: check availability
✔️ VPLS is best suited for businesses with multiple locations needing LAN-like connectivity.
📍 Step 2: choose a provider
✔️ Compare pricing, bandwidth options, and contract terms.
📍 Step 3: implement & configure
✔️ Work with your provider to set up and configure your network.
Our Verdict: Is VPLS Worth It?
✔️ Perfect for businesses needing fast, secure connectivity between locations.
✔️ Reduces latency & improves performance for critical applications.
✔️ Private MPLS network offers enhanced security.
✔️ Scalable for growing enterprises.
⚖️ Overall Rating: ⭐⭐⭐⭐ (4.5/5)
Read more about MPLS here:
Looking to connect multiple offices with fast, secure networking? 👉 Compare leased line and business connectivity deals now
MPLS – Other useful links about leased lines include: Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.