Abstract: The present invention provides a method for interconnecting a plurality of local area networks that are each communicatively coupled to one of a plurality of provider edge nodes. The method includes forming a plurality of tunnels to communicatively connect each of the plurality of provider edge nodes with each of the other nodes in the plurality of provider edge nodes. The method also includes grouping provider nodes to form at least one first island and at least one second island. The first and second pluralities of provider nodes each include at least one of the provider edge nodes and at least one of the provider nodes is configured to function as a first island edge node. At least one inter-island tunnel is formed from the tunnels to communicatively connect each first island edge node with each second island edge node.