Abstract: System and method for providing a layer 2 switch in the access network that switches based upon one or more carrier tags identifying customer traffic. Customer traffic conforming to any variety of different layer 1 or layer 2 protocols may be encapsulated and identified according to carrier tag values. The layer 2 switch may determine how to handle the traffic by interpreting and manipulating the carrier tag values. The layer 2 switch may be capable of switching TDM input traffic to either TDM or packet output traffic, and switching packetized input traffic to either TDM or packet output traffic.