What does the term 'LSP' stand for in MPLS networks?

In MPLS networks, 'LSP' stands for Label Switching Path. This term is fundamental to how MPLS (Multiprotocol Label Switching) operates. An LSP is a predefined path through an MPLS network that data packets follow. When a packet enters the MPLS network, it is assigned a label. This label is used by routers within the network to determine the next hop and continues to direct the packet along the predetermined path, without needing to examine the packet's full destination address at each step.

The importance of LSPs lies in their efficiency and performance improvements over traditional IP routing. By using labels rather than IP addresses for routing decisions, MPLS can significantly speed up the forwarding process, reduce latency, and provide better bandwidth management. This is particularly beneficial in environments where performance and speed are critical, such as in specialized telecommunications services or enterprise networks.

In contrast, the other terms mentioned in the options do not relate to the MPLS framework. Therefore, Label Switching Path is recognized as the correct definition of LSP in the context of MPLS networks.