A method and apparatus for an application aware
traffic shaping service node positioned between the access and core networks is described. One embodiment of the invention enforces a per subscriber, per application traffic policy for network traffic between one or more subscribers communicatively connected through an
access network and a set of one or more service providers communicatively connected through a
core network. According to another embodiment of the invention
enforcement of the per subscriber, per application traffic policy comprises classifying the network traffic into application level subscriber flows, maintaining real-time statistics on the application level subscriber flows and overall
network element congestion, updating, in real-time, the per subscriber, per application traffic policy based on the real-time statistics and restricting bandwidth and dropping packets on the application level subscriber flows as necessary to enforce the per subscriber, per application traffic policy. Another embodiment of the invention is a passthrough mode where the
data traffic is transmitted by the traffic in the same manner as received by the
traffic shaping service node. Yet another embodiment of the invention is a combined service node with integral edge routing and traffic aggregator.