A highly scalable Internet Protocol (IP) based communications system which provides voice and other communication services to end-users. The instant system incorporates a unique architecture which simplifies scaling of services to hundreds of thousands and even millions of subscribers. The instant system architecture includes a means for directly connecting a plurality of peered service providers thereby obviating the need to move the communications across the PSTN. By bypassing the PSTN, the instant system can leverage the advantages of IP-based networks in meeting subscriber communications needs such as, without limitation, quality of service, service up-time, and advanced feature sets. Bypassing the PSTN also allows the peered partners to negotiate communications rates between themselves, without incurring PSTN carrier fees.