Psuedowire termination directly on a router

A method, apparatus and computer program product for routing data within a packet-switched network using a PW wherein the PW is terminated directly on the layer-3 routing device such that certain services and applications can be utilized is presented. The method, apparatus and computer program product receives an encapsulated layer-2 Protocol Data Unit (PDU) from a pseudowire emulating a service. The encapsulation is removed from the encapsulated layer-2 PDU and a layer-2 circuit associated with the pseudowire is terminated. The circuit is treated as an interface and the PDU is forwarded based on upper layer protocol information within the PDU.