Abstract: An improved system and method is disclosed for call handling in a packet network such as a CDMA, UMTS, GSM, and other networks similarly configured. The system may include an anchor media gateway that remains in a communication path even if the call has been handed off to another media gateway. The anchor media gateway includes first and second ports for establishing first and second links to transfer packet communications to and from the first and second entities, respectively. First and second packet connections are provided for interconnecting the first and second links, respectively, to an audio server. A third link connected to the audio server and is provided for transferring packet communications to and from the third entity. The audio server manipulates the packet communications received from the first, second, and third entities and provides the manipulated packet communications to the first, second, and third entities.