A system and method are provided for implementing CESOP inexpensively yet effectively implemented across an MPLS or an IP network. A Zarlink chip provides CESOP functionality, providing a TDM pseudowire by converting TDM streams into Ethernet packets. These Ethernet packets can be processed by a Marvell chip, which has the ability to perform QoS functions on the packets. The Marvell chip converts the Ethernet packets into MPLS or IP packets for transmission over a packet network. Use of a single virtual circuit label, invisible to the packet network for routing purposes, within the Ethernet packet allows Marvell chips at each end of the emulated circuit to tie traffic to a particular customer and to thereby apply appropriate QoS constraints.