Described are a system and method for establishing zone-based pricing for services transported over connectionless and connection-oriented networks. The connectivity network supporting the service is partitioned into one or more zones. A node connected to a packet transport network receives a packet associated with the service. The packet has information that is used to identify one of the zones of the connectivity network to which the packet can be transmitted. Service providers are thus able to use zoning to apply a pricing structure for services traditionally lacking distance-based pricing, such as Ethernet, Storage, and Internet Protocol services.