PIP refers to connectivity into a private extranet network[clarification needed] which by its design emulates the functioning of the Internet.
With this design, there is an ambiguity to the route that a packet can take while traversing the network.
Whereas the Internet is a public offering, MPLS PIP networks are private.
This lends a known, often used, and comfortable network design model for private implementation.
Private IP removes the need for antiquated Frame Relay networks, and even more antiquated point-to-point networks, with the service provider able to offer a private extranet to its customer at an affordable pricepoint.