VPLS UK 2026: Virtual Private LAN Service Costs, Benefits & Alternatives Quick answer:
VPLS is a business networking service that connects multiple locations as if they were part of the same local area network.
In simple terms:
VPLS extends an Ethernet-style LAN across different business sites through a provider-managed network.
VPLS can be useful for businesses that need:
Layer 2 connectivity between sites
private multi-site networking
any-to-any communication between locations
data centre connectivity
low-latency site-to-site traffic
control over IP addressing
legacy application support
resilient branch connectivity
private cloud access
multi-site Ethernet networking
VPLS is usually more relevant to technical, multi-site and infrastructure-heavy businesses than simple single-site SMEs.
Compare VPLS and Business Network Options
Free quotes • No obligation • Compare UK WAN, SD-WAN and connectivity providers
Compare VPLS in the UK Use this guide if you are comparing:
VPLS
VPLS UK
VPLS network
Virtual Private LAN Service
VPLS providers UK
VPLS costs UK
Layer 2 VPN
Ethernet VPN
multipoint Ethernet
private LAN between sites
LAN extension between offices
MPLS VPLS
VPLS vs MPLS
VPLS vs SD-WAN
VPLS alternatives
multi-site Ethernet connectivity
Ethernet WAN
private multi-site network
data centre connectivity
managed WAN
business WAN
cloud connectivity
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: August 2026
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
Key takeaways
VPLS is a Layer 2 networking service that connects multiple sites in a LAN-like way.
It is typically delivered over a provider-managed MPLS or Ethernet network.
VPLS can allow multiple sites to communicate as if they are on the same Ethernet network.
It is different from MPLS IP VPN, which is usually a Layer 3 private WAN service.
VPLS is most relevant where Layer 2 adjacency, Ethernet extension or specific legacy/application requirements matter.
It can be useful for data centre connectivity, private cloud, multi-site Ethernet and certain enterprise networks.
It is usually not the first choice for small single-site businesses.
SD-WAN may be more flexible for cloud-first branch networks.
MPLS or managed WAN may be better for Layer 3 private WAN needs.
Cloud connectivity may be better if the main issue is Azure, AWS, Microsoft 365 or SaaS performance.
Compare VPLS by network design, not only by headline monthly cost.
What is VPLS? It is a type of Layer 2 VPN that lets businesses connect geographically separate sites through a provider network while making them behave more like one shared Ethernet LAN.
In plain English:
VPLS makes separate business sites appear connected at Ethernet level, rather than just routing traffic between separate IP networks.
What does VPLS stand for?
Term
Virtual
Delivered through a provider network rather than one physical LAN cable
Private
Isolated from other customers on the provider network
LAN
Service
Bought as a managed network service from a provider
VPLS
Virtual Private LAN Service
VPLS Virtual Private LAN Service Providers
Provider or route Why businesses compare it Best suited to
Neos Networks
UK business Ethernet services including VPLS and any-to-any connectivity
UK businesses needing Ethernet WAN and multi-site private connectivity
Colt Business Fibre
Enterprise Ethernet, IP VPN and high-capacity network services
Larger, urban, data-heavy or international networks
BT Business
Managed WAN, IP VPN, Ethernet and business connectivity
Larger UK and global networks
Vodafone Business
Private network, IP-VPN, MPLS and managed connectivity options
Businesses wanting fixed, mobile and WAN services
Virgin Media O2 Business
Business connectivity and private network services
UK sites in strong network areas
Redcentric
Managed network, cloud and connectivity services
Organisations wanting managed services and infrastructure support
Exponential-e Cloud, network, data centre and managed connectivity services
Mid-market and enterprise connectivity projects
Managed service providers
VPLS, MPLS, SD-WAN, leased lines and migration support
Businesses needing design advice
Data centre providers
Cross-connects, Ethernet and cloud/data centre access
Businesses using colocation or private cloud
Local fibre providers
Regional Ethernet and leased line access
Businesses needing postcode-specific options
How Do VPLS Work? VPLS creates a virtual bridge between multiple business locations – and a simplified process looks like this:
Each business site connects to the provider network.
The provider creates a private Layer 2 service between those sites.
Traffic can move between sites as Ethernet frames.
The provider network handles transport between locations.
Each site can communicate with other sites in the VPLS.
The customer gets LAN-like connectivity over a wider area.
The important buyer point is:
VPLS is usually about Ethernet-level connectivity between sites, not ordinary internet access.
VPLS vs MPLS VPLS and MPLS are related, but they are not the same thing.
Feature VPLS MPLS
Full name
Virtual Private LAN Service
Multiprotocol Label Switching
Main layer
Layer 2
Usually discussed as Layer 3 WAN/IP VPN
Main role
Extends Ethernet/LAN-like connectivity across sites
Routes private traffic across provider network
Typical use
Multi-site Ethernet, data centre access, LAN extension
Private WAN, branch networks, QoS
Site communication
Often any-to-any Layer 2
Routed site-to-site/private WAN
Best for
Businesses needing Ethernet adjacency
Businesses needing predictable private WAN routing
Cloud fit
Limited unless designed with cloud access
Limited compared with SD-WAN unless modernised
Can work together?
Often delivered over MPLS networks
MPLS can underpin VPLS services
Benefits of VPLS for UK Businesses LAN-like connectivity across sites
VPLS can make several locations behave more like one extended Ethernet network. which can matter for certain applications, data centre designs or legacy systems.
Any-to-any communication
VPLS can allow multiple sites to communicate directly within the same private service.
Useful for data centre connectivity
VPLS can suit businesses connecting:
offices to data centres
colocation racks to sites
private cloud to branch locations
backup sites
disaster recovery sites
multiple operational locations
Private provider network
VPLS usually runs across provider-managed infrastructure rather than the open public internet, which can help if you need private connectivity, although security controls are still required.
Supports specific technical requirements
Some applications, network designs or infrastructure environments need Layer 2 adjacency and VPLS can support those requirements where normal routed WAN services are not suitable.
Limitations of VPLS Not always cloud-first
VPLS is usually designed for private multi-site Ethernet connectivity so might not be the best fit if the main issue is Microsoft 365, AWS, Azure, Google Cloud or SaaS performance.
Can be more complex
VPLS is more technical than standard broadband, DIA or basic VPN connectivity as it usually needs careful design, provider support and internal IT understanding.
Provider availability matters
VPLS depends on provider network coverage, site access, data centre reach and service availability.
Can be more expensive
VPLS is usually quote-based and may cost more than simpler VPN, broadband, DIA or SD-WAN options.
Not always needed
Many businesses do not actually need Layer 2 connectivity across sites but they do need:
SD-WAN
managed WAN
DIA
FTTP
business broadband
VPN
SASE
cloud connectivity
instead.
VPLS vs. SD-WAN: Which is Right for Your Business?
Feature VPLS SD-WAN
Main purpose
LAN-like Layer 2 connectivity between sites
Intelligent routing across multiple connections
Best for
Ethernet extension and private multi-site networks
Cloud-first, multi-site and flexible branch networks
Connection types
Provider Ethernet/MPLS network
Broadband, FTTP, DIA, leased lines, MPLS, 4G/5G
Cloud suitability
Not usually cloud-first
Usually stronger for SaaS and cloud apps
Flexibility
Lower
Higher
Management
Provider-led
Provider-managed or self-managed
Security
Private service but still needs controls
Depends on design; often paired with SASE/firewall
Cost profile
Quote-based and often specialist
Per-site licence/support plus connectivity
Best buyer question
“Do we need Layer 2 connectivity?”
“Do we need smarter WAN routing and failover?”
Choose VPLS when Layer 2 Ethernet behaviour matters.
Choose SD-WAN when cloud routing, failover, central control and mixed connectivity matter more.
VPLS vs leased lines A leased line is a dedicated connectivity circuit.
VPLS is a multi-site Layer 2 service.
Feature VPLS Leased line / DIA
What it is
Multi-site Layer 2 private network service
Dedicated circuit or internet access
Main use
LAN-like connectivity between several sites
Dedicated internet or point-to-point connectivity
Number of sites
Usually multiple
One site or point-to-point
Internet access
Not the main purpose
Yes if sold as DIA
Works with VPLS?
Yes
A leased line can provide access into VPLS
Best for
Ethernet multipoint networks
Dedicated bandwidth at key sites
VPLS vs VPN
VPLS and VPNs can both connect sites, but they work differently.
Feature VPLS VPN
Network layer
Layer 2
Usually Layer 3
Main role
Extends Ethernet LAN across sites
Creates secure tunnels over networks
Best for
LAN-like multi-site connectivity
Lower-cost secure access
Provider dependency
High
Lower or mixed
Performance
Provider network dependent
Internet and VPN design dependent
Scalability
Good for specific enterprise needs
Can become harder at scale
Cost
Usually higher
Usually lower
Technical complexity
Higher
Lower to moderate
Who needs VPLS? VPLS will be worth comparing if your business needs:
Ethernet connectivity between several locations
multi-site Layer 2 networking
data centre to office connectivity
private cloud connectivity
any-to-any site communication
low-latency private site traffic
legacy systems requiring Layer 2 adjacency
control over routing and addressing
high-performance inter-site traffic
resilient network architecture
managed Ethernet WAN
provider-backed private connectivity
It is more likely to suit:
larger SMEs
enterprises
financial services
healthcare organisations
legal firms
media and creative businesses
data-heavy organisations
universities
public sector bodies
data centre users
infrastructure-heavy businesses
Who probably does not need VPLS? VPLS will be unnecessary if:
you have one site
you only need ordinary internet access
you only need Microsoft 365 or SaaS access
you do not need Layer 2 connectivity
a VPN would be enough
SD-WAN would solve the problem more flexibly
you do not own infrastructure or servers
you do not need data centre connectivity
you are mainly trying to reduce broadband costs
you need fast cloud access rather than LAN extension
you have limited IT resource and no managed provider
For most simple branch networks, SD-WAN or managed WAN will be easier to compare than VPLS.
How Much Does VPLS Cost in 2026? VPLS pricing is usually quote-based.
Costs depend on:
number of sites
bandwidth per site
access circuit type
provider network availability
data centre connectivity
resilience
managed support
router or CPE requirements
installation
contract length
SLA
security requirements
migration complexity
As a guide, VPLS quotes may include:
Cost item
Access circuit
Leased line, Ethernet or provider access into the service
VPLS service
The Layer 2 multipoint private network
Bandwidth
Router/CPE
Customer premises equipment
Installation
Site setup, fibre build, configuration or survey work
Managed support
Monitoring, faults, reporting and changes
Resilience
Backup links, diverse circuits or secondary routes
Security
Firewall, segmentation or managed security
Migration
Moving from existing WAN, MPLS or Ethernet services
VPLS for multi-site businesse sVPLS can suit multi-site businesses where sites need to operate as if they are part of the same Ethernet network.
Examples include:
Business need
Data centre access
Connect sites to central infrastructure
Private cloud
Extend Ethernet connectivity to hosted environments
Legacy applications
Support systems that expect Layer 2 adjacency
Multi-site operations
Allow any-to-any communication between sites
Backup site
Link primary and secondary environments
Media workflows
Move large files between controlled locations
Education networks
Connect campuses and shared services
Healthcare/private networks
Support controlled site connectivity
Should you choose VPLS?
Situation
You need Layer 2 connectivity across sites
You need LAN-like behaviour between locations
You need data centre or private cloud Ethernet connectivity
You need basic internet access
You need public cloud/SaaS performance
Usually compare SD-WAN or cloud connectivity first
You need lower-cost branch connectivity
You need simple remote access
VPN or SASE may be better
You need to modernise legacy Ethernet WAN
You are comparing MPLS replacement
Compare SD-WAN, MPLS and managed WAN too
You have limited technical resource
Use a managed provider or compare simpler options
What to ask VPLS providers Before accepting a quote, ask:
do we genuinely need Layer 2 connectivity?
why is VPLS recommended over MPLS, SD-WAN or VPN?
which sites are included?
what access circuit is needed at each site?
what bandwidth is included?
is any-to-any connectivity included?
what SLA applies?
what support is included?
who manages routing and switching?
what customer equipment is required?
what happens if a site circuit fails?
is resilience included?
can we connect to data centres?
can we connect to cloud platforms?
how will security be applied?
are firewalls included?
what monitoring is included?
what reports are included?
what installation fees apply?
could excess construction charges apply?
what contract length applies?
what happens if we add or remove sites?
what is the total monthly cost?
what alternatives would be cheaper or more flexible?
When to review VPLS Review VPLS or VPLS alternatives if:
your existing Ethernet WAN contract is ending
you are moving workloads to cloud
you no longer need Layer 2 adjacency
branch sites mainly use SaaS apps
costs have increased
new sites take too long to connect
you are considering SD-WAN
you are reviewing MPLS
you need better remote access
data centre usage has changed
cloud connectivity is more important than site-to-site LAN extension
your IT team wants simpler management
you need better resilience or failover
Our Verdict: Is VPLS Worth It? VPLS can be a great option for UK businesses that genuinely need Layer 2, LAN-like connectivity between multiple sites and is super relevant for technical networks, data centre access, private cloud, legacy applications and specific Ethernet WAN requirements.
However, it is not the best default option for every multi-site business – you should also compare:
SD-WAN
MPLS
managed WAN
DIA
leased lines
FTTP
VPN
SASE
cloud connectivity
The best approach is to ask whether your business needs Layer 2 LAN extension or simply needs better connectivity, resilience and cloud performance.
If the answer is Layer 2, VPLS is going to be worth comparing.
If the answer is cloud access, branch failover or WAN visibility, SD-WAN or managed WAN could be a better fit.
Read more about MPLS here:
FAQs: VPLS UK What is VPLS?
VPLS stands for Virtual Private LAN Service. It is a Layer 2 VPN service that connects multiple business sites in a LAN-like way over a provider network.
What does VPLS stand for?
VPLS stands for Virtual Private LAN Service.
How does VPLS work?
VPLS creates a virtual Ethernet bridge between sites using a provider network, allowing multiple locations to communicate as if they were part of the same LAN.
Is VPLS the same as MPLS?
No. MPLS is a label-switching technology often used in provider networks. VPLS is a Layer 2 service that may run over MPLS infrastructure.
Is VPLS the same as SD-WAN?
No. VPLS provides Layer 2 LAN-like connectivity. SD-WAN manages traffic across multiple connection types and is usually stronger for cloud-first branch networks.
Is VPLS a VPN?
Yes, VPLS is a type of Layer 2 VPN. It is different from a typical internet VPN used for remote access.
What is VPLS used for?
VPLS is used for multi-site Ethernet connectivity, LAN extension, data centre access, private cloud, legacy applications and any-to-any private site communication.
Who needs VPLS?
VPLS is usually relevant to businesses needing Layer 2 connectivity across sites, not businesses that only need ordinary internet access.
Is VPLS secure?
VPLS is private, but businesses still need security controls such as firewalls, segmentation, access control, monitoring and endpoint protection.
Is VPLS better than SD-WAN?
VPLS is better when Layer 2 Ethernet extension is genuinely required. SD-WAN is usually better for cloud-first networks, branch failover and central traffic control.
Is VPLS better than MPLS?
It depends. VPLS suits Layer 2 multipoint Ethernet needs. MPLS IP VPN suits routed private WAN needs.
Is VPLS better than VPN?
VPLS is usually stronger for private, provider-managed, multi-site Ethernet connectivity. VPN is usually simpler and cheaper for basic secure access.
How much does VPLS cost?
VPLS costs are usually quote-based and depend on site count, bandwidth, access circuits, provider availability, support, SLA, resilience and installation.
What affects VPLS pricing?
VPLS pricing is affected by number of sites, bandwidth, circuit type, provider network, data centre reach, resilience, equipment, support and contract length.
Can VPLS connect to cloud services?
VPLS can support private or data centre connectivity, but for public cloud and SaaS performance, cloud connectivity, SD-WAN or SASE may be more suitable.
Can VPLS connect multiple offices?
Yes. VPLS is designed to connect multiple sites in a LAN-like way.
What are the alternatives to VPLS?
Alternatives include SD-WAN, MPLS IP VPN, managed WAN, DIA, leased lines, VPN, SASE and cloud connectivity.
How do I compare VPLS providers?
Compare site coverage, access circuits, bandwidth, SLA, data centre reach, support, resilience, security, alternatives and total monthly cost.
Related SD-WAN and WAN guides
SD-WAN Managed SD-WAN Services https://compareyourbusinesscosts.co.uk/managed-wan-services
SD-WAN Costs UK https://compareyourbusinesscosts.co.uk/sd-wan-costs
SD-WAN vs MPLS https://compareyourbusinesscosts.co.uk/sd-wan-vs-mpls
SD-WAN Solutions https://compareyourbusinesscosts.co.uk/sd-wan-solutions
What is SD-WAN? https://compareyourbusinesscosts.co.uk/what-is-sd-wan
WAN and multi-site connectivity WAN Providers UK https://compareyourbusinesscosts.co.uk/wan-providers
Managed WAN Services https://compareyourbusinesscosts.co.uk/managed-wan-services
Business Connectivity Solutions https://compareyourbusinesscosts.co.uk/business-connectivity-solutions
Multi-Site Connectivity https://compareyourbusinesscosts.co.uk/multi-site-connectivity
Cloud Connectivity https://compareyourbusinesscosts.co.uk/cloud-connectivity
Connectivity and alternatives Leased Line Costs UK https://compareyourbusinesscosts.co.uk/leased-line-costs
Leased Line Providers UK https://compareyourbusinesscosts.co.uk/leased-line-providers
Dedicated Internet Access https://compareyourbusinesscosts.co.uk/dedicated-internet-access
MPLS Networks Explained https://compareyourbusinesscosts.co.uk/mpls
Business Internet Security https://compareyourbusinesscosts.co.uk/business-internet-security
Compare VPLS and Business Network Options Compare VPLS, MPLS, SD-WAN, managed WAN and dedicated connectivity options based on your sites, applications, Layer 2 requirements, cloud usage, security, support and total monthly cost.
Free quotes • No obligation • Compare UK business network providers
Compare VPLS and WAN Quote
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.
