PIP in telecommunications and datacommunications stands for Private Internet Protocol or Private IP. PIP refers to connectivity into a private extranet network[clarification needed] which by its design emulates the functioning of the Internet. Specifically, the Internet uses a routing protocol called border gateway protocol (BGP), as do most multiprotocol label switching (MPLS) networks. With this design, there is an ambiguity to the route that a packet can take while traversing the network. Wherein 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.