In passive optical networks (PONs), the low effectiveness in terms of service utilization and network evolution have been important design issues. In this article, we introduce a hybrid access network architecture, so called scalable WDM-based Ethernet hybrid-PON (SWE-PON), which features a wavelength-division-multiplexed (WDM) feeder network using a combination of tunable laser device (TLD) and cyclic arrayed waveguide grating (AWG) and time-division-multiplexed (TDM) distribution network based on a reflective transmission mode. Necessary conditions needed to guarantee flawless packet transmission through normal WDM/TDM hierarchical PONs including the SWE-PON, are analyzed. We also propose a hierarchical fair time-window allocation mechanism which coordinates wavelength assignment and time-window bandwidth allocation so that high link utilization and fair bandwidth allocation are guaranteed in every multiplexing level.