MNOs are moving beyond traditional circuit transport to offer managed overlays and consumption-based models. As the lines blur between MPLS, SD-WAN, MPN, and NaaS, the question for enterprises and MNOs is how these models fit together in a hybrid WAN landscape.
In sum – what to know:
Circuits to services – MPLS is a valuable base for high-performance WAN transport, but the enterprise shift to cloud and edge has driven the rise of SD-WAN overlays, private 5G (PMN) access, and NaaS consumption models.
Hybrid enterprise WAN – modern enterprises now blend multiple connectivity types (MPLS for reliability, SD-WAN for flexibility, MPN for wireless edge, and NaaS for agility) within a single orchestrated architecture.
New MNO playbook – MNOs are looking to go from pure connectivity providers to ‘connectivity-plus’ platforms – integrating underlay, overlay, and wireless capabilities through programmable, service-based offerings.
Enterprise connectivity is undergoing a significant reset as mobile network operators (MNOs) reposition for growth. Deployments of private mobile networks (PMNs) are rising sharply, it seems – with too many to report, suddenly. Meanwhile, operators are stepping up their “connectivity‑plus” ambitions: offering not just circuit transport but managed service overlays and cloud‑native connectivity models. The time is right, then, to revisit how enterprise WAN models have evolved – and how the key MNO players in the market now think about serving those needs.
This explainer considers four key MNO connectivity solutions: MPLS, SD‑WAN, PMN (or MPN), and NaaS. We will deconstruct these acronyms as we go. The point is to explore what enterprises actually want from them, how they overlap and contrast, and how MNOs can rationalise and monetise them in modern hybrid architectures. So let’s get going…
1. MPLS: the foundation for enterprise WAN
For two decades at least, the gold standard for wide‑area connectivity was multiprotocol label switching (MPLS). It offered carrier‑managed, highly reliable, QoS‑enabled wide-area network (WAN) circuits to connect multiple enterprise locations across large geographic areas – for example, a company’s headquarters, branch offices, data centres, and other cloud resources.
Previously (in the 1990s), enterprise WANs often used technologies like Frame Relay, ATM (Asynchronous Transfer Mode), or leased lines, which were slower, more rigid, and required manual configuration. MPLS came along in the 2000s as a more flexible and efficient WAN technology, replacing these older WAN transport methods as the preferred way to connect multiple sites.
What enterprises liked about MPLS:
– Predictability of performance (low jitter, controlled paths),
– Single‑source managed service (often via an MNO or global carrier),
– Ability to support voice/video/data convergence over a managed underlay.
But MPLS also has its limitations:
– Long lead‑times and cost of provisioning new circuits,
– Less flexibility to accommodate rapid site changes, cloud‑on‑ramp, remote/branch traffic,
– Increasing mismatch with the cloud‑centric architecture of many buyers.
A 2023 study by Graphiant, as reported in Computer Weekly, says enterprises are not happy with MPLS, nor its evolutionary progeny SD-WAN (see below), to serve the changing workplace, with higher numbers of remote workers and remote offices, rising requirements for IoT and cloud connectivity, and broader digital change patterns in the global economy. MPLS is weak on scalability, agility, and cost, they reckon.
For MNOs and carriers, MPLS remains a valuable base product, but the growth trajectory is increasingly flat, and focus is shifting to overlay/edge/cloud‑connected services.
2. SD‑WAN: the modernisation of enterprise WAN
In response to cloud migration, branch office growth and bursty traffic patterns, software‑defined wide area networking (SD‑WAN) emerged as a next‑generation approach. Rather than only relying on private underlay circuits, SD‑WAN enables enterprises to build overlay networks: using broadband/internet links, MPLS, or a mix of both, with centralised control, path‑selection, dynamic routing, and application‑aware policy.
Key advantages of SD‑WAN:
– Greater flexibility: ability to mix access types (broadband, LTE, MPLS),
– Visibility and centralised control over the overlay network,
– More rapid rollout of new sites or cloud‑connectivity.
ResearchGate says SD‑WAN is very much aligned with this shift. “With the acceleration of digital transformation … the need for agile and more scalable networking solutions. SD‑WAN is up to the task,” it writes. However, SD‑WAN alone is not a panacea either (of course). The underlay still matters for service performance (latency, quality) and guarantees (SLAs), especially for mission‑critical use‑cases.
The survey covered in Computer Weekly, referenced earlier, says enterprises have increasingly turned to edge NaaS solutions (see below) as MPLS and SD-WAN “were failing” to meet modern requirements. For MNOs, the opportunity now lies in offering SD-WAN with a managed underlay — built on MPLS or partner infrastructure — and integrated cloud-connect access, rather than simply providing SD-WAN over the public internet.
3. MPN: connecting the campus and industrial edge
The next frontier in enterprise connectivity is wireless – specifically variously-dedicated 5G-based mobile private networks (MPNs) in enterprise/campus/industrial settings. These can be entirely separate private networks, or slices/virtualised segments of the public mobile network offered by an MNO.
From the enterprise standpoint MPN offers:
– High bandwidth + low latency wireless access (important for Industry 4.0, IoT, AR/VR),
– Greater control/security than public mobile networks (customised network, dedicated spectrum / resources),
– Flexibility for sites that are difficult to wire (large campuses, metal‑rich factories, outdoor logistics sites).
For MNO enterprise teams, MPN is both a threat (enterprises cut out the MNO) and an opportunity (enterprises choose the MNO for a managed MPN or public network ‘slice’). On the latter, Disruptive Analysis states: “There is still optimism among operators and vendors that deployment of their own standalone cores, plus subsequent upgrades to Release 16/17, will lead to a renaissance of the ‘sliced national network’ vision for 5G private networks.”
Operators must decide whether they:
– Sell public 5G network slices to enterprises, or:
– Build and operate private 5G campuses themselves (sometimes via partners),
– Offer integrated connectivity packages that combine SD‑WAN, managed underlay, and MPN access.
In effect, MPN becomes a ‘leg’ of the new hybrid connectivity architecture for MNO working in the enterprise market, especially for sites with wireless access needs.
4. NaaS: the consumption model shift
Underlying all of this is a broader shift in enterprise expectations: connectivity consumed like a cloud service – on‑demand, elastic, programmable, and API‑driven (rather than fixed circuits and long‑term contracts). This is the heart of network‑as‑a‑service (NaaS), and a reflection of enterprise IT has evolved toward cloud-like consumption, fitting enterprises with hybrid workforces, multi-cloud apps, and dynamic branch deployments.
With NaaS, enterprises want:
– Consumption models (pay‑as‑you‑go, monthly or usage‑based),
– Programmability (APIs for network provisioning, modification),
– Elastic scale and fast provisioning,
– Integrated services: connectivity + security + cloud on‑ramp + edge services.
For MNOs this is a strategic pivot, and it requires MNOs to re‑architect with open APIs, orchestration, flexible business models.
5. Hybrid WAN: fitting the pieces together
Modern enterprises operate across mixed topologies: HQ, branch, cloud, edge, mobile, IoT. No single model addresses all use‑cases. The layering often looks like:
– Underlay transport: MPLS circuits still deployed for sites requiring high SLA/low latency; optionally broadband or LTE links for redundancy.
– Overlay control / management: SD‑WAN provides unified overlay routing across the underlay, with path‑selection, central controller, cloud‑connect.
– Wireless campus / edge access: P5G becomes the access layer (especially for large campuses, factories, IoT zones) or a coordinated alternative.
– Consumption model: NaaS overlays all of it – the enterprise expects connectivity packaged as a service: a single subscription, API access, integrated on‑ramps to cloud and managed services.
An enterprise might have MPLS for its key data centres, SD‑WAN for its distributed branch offices, MPN for its manufacturing campus – and buy it all through a NaaS contract from its operator.
6. Implications: changing enterprise strategies
For MNOs, the priority is no longer just connectivity, but the ability to deliver connectivity as part of a broader value system. The challenge (and opportunity) lies in moving beyond the sale of circuits to create intelligent, service-rich network platforms that can flex with enterprise needs. This starts with underlay differentiation: retaining the inherent value of MPLS-grade performance, global reach, and low-latency guarantees, while linking that high-quality transport to SD-WAN overlays and direct cloud access.
The next step is some kind of ‘platform-ification’, if you’ll permit us such an ugly turn-of-phrase, whereby MNOs develop open APIs, automation frameworks, and orchestration layers so connectivity becomes a programmable network service rather than a fixed asset. In this new model, the NaaS capability becomes a crucial differentiator, allowing enterprises to consume networking as easily as they consume cloud resources.
A third pillar has to be wireless and edge convergence. Here, MPNs of various kinds are positioned as enterprise access paths, either through direct partnerships with enterprises or via fully managed deployments. Integrating these cellular domains into the wider WAN offering can strengthen the operator’s role in enabling distributed, low-latency applications at the edge. Equally, verticalisation and managed services are emerging as important routes to monetisation.
To capture new value, MNOs are tailoring offers to specific industries – manufacturing, logistics, campuses, IoT – where they can combine managed connectivity with domain-specific solutions.
Finally, hybrid architecture enablement ties these strategies together. Enterprises no longer want fragmented point solutions; they want orchestration across mixed underlays, wireless extensions, cloud on-ramps, and integrated security overlays. The operators that can manage this hybrid fabric end-to-end will become indispensable partners. In short, while MPLS once stood alone as the enterprise WAN standard, the demands of the ‘digital-first’enterprise have fuelled the rise of SD-WAN, MPN, and NaaS.
Each model plays a distinct role: MPLS delivers reliability, global reach, and SLA-grade service; SD-WAN adds flexibility, overlay control, and faster branch rollout; MPN provides wireless reach, low latency, and industrial-grade mobility; and NaaS introduces programmability and cloud-like consumption. For enterprises, the objective is to blend these models into hybrid architectures that optimise performance, agility, and cost.
For MNOs, the strategic imperative is to evolve from pure connectivity providers into connectivity-plus platform players – combining underlay transport, overlay control, wireless access, and service orchestration. The winners will be the MNOs who can wrap their traditional connectivity strengths into next-generation packaging – to bundle and integrate SD-WAN and MPN in NaaS packages, as flexible enterprise offerings.
