Abstract: A network can be organized for providing virtual private LAN segment (VPLS) services to customers into a network core and an associated number of logical provider edges. Each logical provider edge is partitioned into a plurality of Edge-PEs and a Core-PE. Customers connect to the Edge-PE. The Edge-PE maintains a context (a virtual bridge) for each customer VPLS it serves, VPLS service is realized by a full mesh of so called virtual circuit (VC) tunnels between virtual bridge ports. Each VC tunnel is identified by 3 VC labels in each direction, the first label is used in the encapsulation of customer traffic from the ingress Edge-PE to the ingress Core-PE, the second from ingress Core-PE to egress Core-PE and the third from egress Core-PE to Egress Edge-PE. The mechanisms for the allocation of the label values to and how the label values are used provide a realization of VPLS service that is scalable and easy to administer.