Ethernet is evolving from its origins in the local area network into a cost-effective and reliable wide area network technology. Market research shows that business customers are moving away from traditional leased lines and selecting Ethernet as the access network technology of choice due to its low cost, simplicity and flexibility. Developments in Ethernet technology are now offering service providers the opportunity to deliver cost-effective carrier class Ethernet services. In particular, a new generation of Ethernet network termination equipment (NTE) is emerging which provides remote management, flexible bandwidth and fault diagnosis while supporting access to multiple services delivered over a single physical connection. This paper describes the advantages and potential cost savings of using Ethernet in the access network. A case study for a city demonstrates significant capital expenditure cost savings and highlights the advantages of using new Ethernet NTEs, which can be up to ten times cheaper than SDH technology, delivering equivalent bandwidth. Remote management and fault diagnosis features can also reduce operational expenditure by avoiding unnecessary site visits.A network architecture is presented which supports delivery of Ethernet services over a combination of circuit-switched and packet-switched domains. New standards which are maturing in the IETF, IEEE and ITU to support Ethernet delivery of interoperable services with carrier class reliability are also discussed.