A home gateway system (20) includes a transceiver (50) connected to a switch (52). A processor (54) is connected to the switch (52) and provides intelligent functions for the switch (52). A router (56) is connected to the switch (52). The router (56) upon receiving a data packet from an internal port where the data packet has an external address, routes the data packet through the switch (52) to the processor (54). The processor (54) directs the transceiver (50) to establish a telephony connection with an internet service provider (34) and sends the data packet to the internet service provider (34).