A method of encapsulating data packets for use in a distributed computer network is disclosed. The method includes providing a data packet for transmission over the distributed computer network, the data packet selected from one of a customer data packet and an OAM data packet; and encapsulating the data packet with a medium access control outer packet. The disclosed data packet handling method includes receiving a data packet from a customer facing data port, the customer facing data port within a network node of a computer network; performing medium access control (MAC) learning for the received packet; determining whether the data port is a MAC-in-MAC port; performing a packet mapping to a destination address based on a service provider destination address; and encapsulating the received data packet with a header associated with the service provider.