The packet forwarding process at each router is based on the concept of label swapping. This concept is similar to what occurs at each Asynchronous Transfer Mode (ATM) switch in a permanent virtual circuit (PVC). Each MPLS packet carries a 4-byte encapsulation header that contains a 20-bit, fixed-length label field. When a packet containing a label arrives at a router, the router examines the label and copies it as an index to its MPLS forwarding table. Each entry in the forwarding table contains an interface-inbound label pair mapped to a set of forwarding information that is applied to all packets arriving on the specific interface with the same inbound label.