The present invention is directed to a local network access architecture and method of providing local services that advantageously replaces portions of the physical hardwired local loop with a path that is software-defined. In one embodiment the system comprises a remote terminal comprising a packet processor that converts an analog signal carried on a customer loop into digital packets and a packet node connected to the remote terminal configured to selectively forward the digital packets based on an identifier in the digital packets to equipment of one of a plurality of local exchange carriers, wherein said plurality of local exchange carriers are different companies and each one of said plurality of local exchange carriers provides at least one different service subscribed to by a subscriber.