EXPLANATION
MPLS is a scalable, protocol-independent transport. In
an MPLS network, data packets are assigned labels. Packet-forwarding
decisions are made solely on the contents of this label, without the
need to examine the packet itself. This allows one to create end-to-end
circuits across any type of transport medium, using any protocol. The
primary benefit is to eliminate dependence on a particular OSI model
data link layer (layer 2) technology, such as Asynchronous Transfer Mode
(ATM), Frame Relay, Synchronous Optical Networking (SONET) or Ethernet,
and eliminate the need for multiple layer-2 networks to satisfy
different types of traffic. MPLS belongs to the family of
packet-switched networks.
MPLS operates at a layer that is
generally considered to lie between traditional definitions of OSI Layer
2 (data link layer) and Layer 3 (network layer), and thus is often
referred to as a layer 2.5 protocol.
SOURCE
http://it.toolbox.com/blogs/intruder-detection/mpls-and-the-osi-reference-model-where-does-mpls-fit-in-50920