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Pseudowires can be used to connect geographically separated L2 networks by emulating an L2 point-to-point connection over a MPLS backbone. While each pseudowire can be configured manually, a L2VPN solution can be used to perform auto-discovery and signaling of the desired pseudowires. VPWS (Virtual Private Wire Service) can be used for auto-discovery and signaling of point-to-point pseudowires. The pseudowires in each VPWS instance can be signaled by LDP or BGP. When signaled using BGP, there are two VPWS sub-types:

This feature introduces per-nexthop MPLS label allocation for the IPv4-unicast default-route and the IPv6-unicast default-route. Previously, BGP-VPN VRFs only supported a per-VRF label scheme. With a per-VRF label scheme, each BGP-VPN supported AFI-SAFI (i.e. IPv4-unicast and IPv6-unicast) in the BGP-VPN VRF is allocated a single "per-VRF" label that will be shared by all the AFI-SAFI’s routes. When the routes are exported as BGP-VPN routes, all the routes will be exported with the same "per-VRF" VPN label. In the Label FIB (LFIB), each allocated "per-VRF" label is associated with an ip-lookup action inside their corresponding BGP-VPN VRF.

Virtual Private LAN Service (VPLS) can be used when one wishes to connect several LANs dispersed across a packet switched network. VPLS can allow the dispersed LANs to act like a single bridged LAN by providing a service to connect the LANs. The service will appear like an Ethernet LAN (in almost all regards). VPLS achieves this by creating a mesh of pseudowires that connect the dispersed LANs, while also processing the traffic that moves through the pseudowires in a similar way to how a L2 service would. For example, MAC address learning, flooding and forwarding functions are applied to the pseudowire traffic in a VPLS. This allows  VPLS to mimic the functionality of an any-to-any L2 service when connecting dispersed LANs.