A Layer 2 circuit is a point-to-point Layer 2 connection that transports traffic by MPLS or another tunneling technology on a service provider network. The Layer 2 circuit creates a virtual connection to direct traffic between two CE routers. The primary difference between a Layer 2 circuit and an Layer 2 VPN is the method of setting up the virtual connection. Like a leased line, a Layer 2 circuit forwards all packets received from the local interface to the remote interface.
