A network can be organized for providing virtual private network services to customers into two regions. A network core for providing layer 2 transport and an associated number of logical provider edges. Each logical provider edge is partitioned into first and second portions. The first portion provides virtual private network services to customers. The second portion works with the core network to communicate with any other logical provider edge within the network. The first portion designated as the PE-Edge includes a group of functions such as a function for configuring optical Ethernet layer 2 virtual private network service, a function for service labeling, a function for ingress traffic management, and a function for information exchange between local VPN and core VPN. The second portion designated as PE-Core includes a group of functions such as a function for distributing service labels, a function for distributing information on transport tunnels, a function for information exchange between local and core VPN. Within the logical provider edge or Logical PE, the PE-Edge and PE-Core communicate via a layer 2 network.