A method for handling subscribers' network traffic between a CPE (customer premises equipment) and a broadband access network includes establishing a subscriber session between the CPE and a BNG (broadband network gateway, an entity within the broadband access network), to set up a network route between the CPE and the BNG. Data transmitted within the subscriber session are encapsulated into protocol frames. A NCE (network control entity) acquires a state of the subscriber session and updates network policies in at least one network entity on the network route based on the state of the subscriber session. A DEM (dynamic encapsulation module) decides, based on a DEM configuration, whether data sent to the broadband access network are encapsulated data within the subscriber session or are non-encapsulated data outside the subscriber session. The data are transmitted on a part of the network route and are handled according to the network policies.