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Mobile network standardization has in the recent past made great strides towards defining a flattened network architecture that is more scalable and flexible. An example of such an architecture is the 3GPP Evolved Packet System (EPS) which includes long term evolution (LTE) access and an all IP based Evolved Packet Core (EPC) network. This, coupled with the increase in mobile data traffic has led to operator interests to deploy a decentralized core network for efficient mobile content distribution and delivery. Such an approach is seen as a major requirement for network optimization and improved quality of experience for users. However, an in depth evaluation of IP traffic routing in a distributed EPC network reveals the existence of scenarios that may lead to nonoptimal traffic routing. In this paper, we describe these scenarios and propose solutions. We further describe our testbed implementation and evaluation to validate the identified problems and proposed solutions. The testbed results show that our work in this area can further optimize mobile networks for IP traffic and improve user experience.