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MPLS (multiprotocol label switching) is a new WAN technology currently being standardized by IETF that addresses key requirements of Internet Service Providers (ISP). ISPs can use MPLS mechanisms for improved traffic engineering and load balancing in their core Internet backbone. MPLS is a flexible tool that enables advanced services such as IP-based VPNs or differentiated service classes. The basic idea for MPLS is to add short fixed length labels to IP packets that can be used by the forwarding engines in the network to simplify packet forwarding. This provides a convenient means to base packet forwarding on other criteria besides the destination only of traditional IP networks. MPLS enabled Internet consists of a set of nodes called Label Switch Routers (LSRs) and Label Edge Routers (LERs).