Methods, computer-readable media, and devices for instantiating a service provider application on a customer premises-based device are disclosed. For example, a processing system of a telecommunication service provider network having at least one processor may establish a first tunnel between the processing system and a virtual machine monitor of a customer premises-based device and send a first instruction to the virtual machine monitor via the first tunnel to instantiate a first service provider application on the customer premises-based device. The processing system may further establish a second tunnel between the processing system and the first service provider application and send a second instruction to the first service provider application via the second tunnel to configure the first service provider application to operate in a service function chain.