Embodiments are directed to a virtual mobility anchor network element to receive, from a packet gateway (PGW) node, a request for an internet protocol (IP) address for a mobile device, establish an IP address for the mobile device; and provide the IP address to the PGW node in response to the request for the IP address for the mobile device. The virtual mobility anchor network element is configured to receive IP traffic from a network location; determine a target destination for the IP traffic based on a destination IP address, the destination IP address comprising the second IP address; and forward the IP traffic to the PGW node associated with the destination IP address. The virtual mobility anchor network element is also configured to receive IP traffic from the PGW node; determine a target destination for the IP traffic; and route the IP traffic to the target destination.