WAN technologies: leased lines, PPP, MPLS, Metro Ethernet, broadband and VPNs
In short: A WAN links sites that are far apart using a provider’s network. Options range from dedicated leased lines (often with PPP) and provider services such as MPLS and Metro Ethernet to low-cost internet links protected by IPsec VPNs, with mobile data as backup. Choose by cost, bandwidth, reliability, security and coverage.
What a WAN is
A wide area network connects sites in different cities or countries. Unlike a LAN, the organisation rarely owns the links: it rents them from service providers. A private WAN uses dedicated circuits or provider-managed services; a public WAN uses the internet, protected with VPNs.
Leased lines and PPP
A leased line is a dedicated point-to-point circuit between two sites: predictable and private, but expensive and inflexible. Serial links on such circuits often run PPP (Point-to-Point Protocol):
- LCP (Link Control Protocol) sets up, tests and ends the link.
- NCPs (Network Control Protocols) carry each Layer 3 protocol, such as IPCP for IPv4.
- Authentication: PAP sends the password in clear text once (two-way); CHAP uses a three-way challenge and hashed response, repeats it during the session, and never sends the password. Use CHAP.
username HQ-RTR password Shared-Chap-Secret
interface serial 0/0/0
encapsulation ppp
ppp authentication chap
ip address 10.255.0.1 255.255.255.252
Provider services: Frame Relay, MPLS and Metro Ethernet
- Frame Relay (legacy): virtual circuits identified by DLCIs, with a committed information rate. Common in the 1990s and 2000s, now largely retired.
- MPLS: the provider forwards traffic using labels and keeps each customer separate in its own VPN. Offers any-to-any connectivity, quality of service and service-level agreements (SLAs). It separates customers but does not encrypt.
- Metro Ethernet: Ethernet delivered across a city or region; simple to use because sites look like they are on one big switch.
Broadband, mobile and internet VPNs
- Broadband: DSL over telephone lines, cable, and fibre to the premises. Cheap and fast, but usually best effort without an SLA.
- Mobile (4G/5G): quick to deploy; ideal for backup links, temporary sites and IoT.
- Internet VPN: any internet link plus an IPsec tunnel gives private, encrypted site-to-site connectivity at low cost. See VPNs and IPsec.
Choosing a WAN solution
| Option | Cost | Performance guarantee | Best for |
|---|---|---|---|
| Leased line | High | Dedicated | Critical point-to-point links |
| MPLS VPN | Medium to high | SLA and QoS | Many sites, voice and video |
| Metro Ethernet | Medium | SLA | Sites in the same city |
| Internet + IPsec | Low | Best effort | Small branches, backup, cloud access |
| 4G / 5G | Low to medium | Variable | Backup, temporary or remote sites |
Most organisations now mix two or more of these and manage them together with SD-WAN.
Real-world example: mixing WAN options in a logistics company
A logistics company runs a head office, two large distribution centres and fifteen small depots. The head office and distribution centres connect over an MPLS service from one provider, because their warehouse systems need predictable delay and the provider offers a service level agreement. Each of these sites also has a business broadband line with an IPsec VPN to head office as a backup.
The small depots have only a few PCs and handheld scanners, so MPLS would cost too much. They use broadband with an IPsec VPN as the main link and a 4G router as backup. When a road crew cut the fibre to one distribution centre, traffic moved to the broadband VPN automatically, and the warehouse kept shipping. The mix gives each site the right balance of cost and reliability.
Practice
Why is CHAP preferred over PAP?
Does MPLS encrypt customer traffic?
Suggest a cheap backup link for a branch with a single MPLS circuit.
Key takeaways
- WANs connect distant sites over provider networks.
- PPP uses LCP and NCPs; authenticate with CHAP, not PAP.
- Frame Relay is legacy; MPLS and Metro Ethernet are today’s provider services.
- Internet links with IPsec VPNs are cheap and secure but best effort.
- Choose by cost, bandwidth, SLA, security and coverage; many mix several.
Original content written by Mohamed Fayas for FM TecHub. © 2026 FM TecHub. You're welcome to share a link to this page; please don't copy the text elsewhere without permission.