Method and system for processing traffic in an access network

A method and system for processing traffic in an access network includes receiving a plurality of ingress traffic streams from customer premise equipment (CPE). Each ingress traffic stream includes a plurality of Internet Protocol (IP) packets having an IP address. The ingress traffic streams are aggregated into a combined traffic stream without regard to the IP addresses. The combined traffic stream is transmitted to a backbone network for routing based on the IP addresses. An egress traffic stream is received from the backbone network and includes a plurality of IP packets each having an IP address. A CPE port is determined for each IP packet based on its IP address. The IP packets are routed to their respective CPE ports and transmitted to their destination CPEs.