PPPoE

ISPs value PPP because of the authentication, encryption, accounting, and link management features. Customers appreciate the ease and availability of the Ethernet connection. However, Ethernet links do not natively support PPP. A solution to this problem was created, PPP over Ethernet (PPPoE).

Client Router

Client(config)#interface dialer 5
Client(config-if)#mtu 1492
Client(config-if)#ip address negotiated
Client(config-if)#encapsulation ppp
Client(config-if)#dialer pool 1
Client(config-if)#ppp authentication chap callin
Client(config-if)#ppp chap hostname ALEX
Client(config-if)#ppp chap password CISCOPPPOE
Client(config-if)#exit

Client(config)#interface g0/1
Client(config-if)#no ip address
Client(config-if)#pppoe enable
Client(config-if)#pppoe-client dial-pool-number 1
Client(config-if)#exit

Cust1(config)#ip route 0.0.0.0 0.0.0.0 dialer 1

ISP Router

//Create a local database username and password
ISP(config)#username ALEX password CISCOPPPOE

//Create a pool of addresses that will be assigned to customers
ISP(config)#ip local pool PPPoEPOOL 10.0.0.1 10.0.0.10

//Create the Virtual Template and associate the IP address of G0/1 with it. Associate the Virtual Template with the pool of addresses. Configure CHAP to authenticate customers
ISP(config)#interface virtual-template 1
ISP(config-if)#ip address 10.0.0.254 255.255.255.0
ISP(config-if)#mtu 1492
ISP(config-if)#peer default ip address pool PPPoEPOOL
ISP(config-if)#ppp authentication chap callin
ISP(config-if)#exit

//Assign the template to the PPPoE group
ISP(config)#bba-group pppoe global
ISP(config-bba-group)#virtual-template 1
ISP(config-bba-group)#exit

//Associate the bba-group with the G0/1 physical interface
ISP(config)#interface g0/1
ISP(config-if#pppoe enable group global
ISP(config-if)#no shut down