The possibility of adding MPLS support to transport networks is considered an important opportunity by telecom carriers that want to add packet services and applications to their networks. However, the question arises whether it is convenient to add MPLS nodes just at the edge of the network to collect packet traffic from users, or it is better to have also MPLS core nodes to exploit packet switching flexibility and multiplexing. This paper proposes mathematical programming models for the design of two-layer networks where MPLS is considered on top of transport networks (SDH or WDM depending on required link speed).
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