A service provider unit automatically diagnoses problems in an Ethernet network that are associated with layers 1, 2, and/or 3 and determines whether there is a problem associated with an Ethernet gateway switch EGS. Further diagnostics can be performed to determine the layer, type, and/or location of the problem(s) based on whether there is a problem with the EGS. The diagnostic process followed depends on the types of problem(s) in the network. Once the problems have been diagnosed, an operator can be notified of the location and/or type of problem.