A high-capacity digital communications system and method of transporting 10 GbE LAN packets between user devices over an OTN network that allows the packets to be transported in a manner that is transparent to the destination device(s) on the network. The digital communications system includes an OTN network, and at least one source device and at least one destination device connected to the network via respective 10Gbase-R interfaces. The system transports 10 GbE LAN data packets over the OTN network by performing decoding on the packets to recover the preamble and variable length data contained in each packet, removing the IPG between successive packets in the stream, encapsulating the packets including the respective preambles and data, and mapping the encapsulated packets to the overhead and payload areas of ODUk frames. The packets are then transported over the OTN network from the source device to the destination device.