The convergence of traditional network services to a common IP infrastructure has resulted in a major paradigm shift for many service providers. Service providers are looking for profitable ways to deliver value-added, bundled, or personalized IP services to a greater number of broadband users. As cable operators and Digital Subscriber Line (DSL) providers capitalize on IP networks, they need to create higher-margin, higher-value premium services, such as interactive gaming, Video-on-Demand (VoD), Voice-over-IP (VoIP) and broadband TV (IPTV). The missing element of the current strategy is service differentiation, i.e. the ability to understand at a granular level how subscribers are using the network, identify what applications or services are being consumed, and then intelligently apply network resources to applications and attract subscribers that promise the highest return on investment. Operators need to manage and control subscriber traffic. This can be accomplished by introducing more intelligence into the network infrastructure, which enhances the transport network with application and subscriber awareness. Such unique visibility into the types of bits carried allows the network to identify, classify, guarantee performance and charge for services based on unique application and subscriber criteria. Instead of underwriting the expenses associated with random and unconstrained data capacity, deployment and consumption, this new wave of network intelligence allows operators to consider Quality-of-Service (QoS) constraints while enabling new possibilities for broadband service creation and new revenue-sharing opportunities. The same is true with third-party service providers, who may, in fact, be riding an operator's network undetected.