Point-to-Point Protocol over Ethernet
(PPPoE)
What is Point-to-Point Protocol over Ethernet (PPPoE)?
Point-to-Point Protocol over Ethernet (PPPoE) is a network protocol that facilitates communication
between network endpoints. PPPoE encapsulates Point-to-Point Protocol (PPP) frames
inside Ethernet frames, offering the same benefits as PPP, while providing connectivity across Ethernet
networks.
With PPPoE, service providers can manage multiple client systems, authenticate their access to its
services and track customer data usage. PPPoE also supports services such as data encryption and
compression.
What is PPPoE used for?
PPPoE is commonly used by internet service providers (ISPs) to deliver internet access services to
their customers, typically over broadband connections. PPPoE is implemented extensively by providers
offering digital subscriber line (DSL) services. Providers that use PPPoE can connect multiple hosts on
a single Ethernet local area network to a remote site via a common device such as a cable or DSL
modem. The protocol can also support wireless connections to the internet.
How does PPPoE work?
Ethernet and PPP do not provide native support for each other, yet they both offer important
benefits for supporting multihost network environments. PPPoE bridges the gap between
Ethernet and PPP by facilitating a point-to-point relationship between network peers. A
multihost Ethernet environment can use PPPoE to open PPP sessions to multiple
destinations via one or more bridging modems.
Like Ethernet and PPP, PPPoE operates at the network access layer in the Transmission
Control Protocol/Internet Protocol (TCP/IP) and at the data link layer in the Open Systems
Interconnection (OSI) model. The protocol is intended for use with remote access broadband
technologies that offer a bridged Ethernet topology. With PPPoE, service providers can take
advantage of Ethernet's cost-effective benefits and still maintain the session abstraction,
access control and billing functionality available to PPP.
PPPoE communications are carried out in two stages: PPPoE discovery and PPP session.
During the PPPoE discovery stage, the client system establishes a communication channel
with an access concentrator (AC) -- a PPPoE server that negotiates and authenticates the
connections with PPPoE clients. For example, a service provider might maintain multiple ACs
for delivering internet access services to its customers.
When a client attempts to initiate a session with an AC, the client and AC enter into a four-
step discovery process in which specific packet types are exchanged:
1. The client initiates communication by transmitting a PPPoE Active Discovery
Initiation (PADI) packet that includes a request for service.
2. When an AC receives the PADI, it responds by sending a PPPoE Active Discovery
Offer (PADO) packet that contains its own name and other details about the offered
service.
3. In response to the PADO, the client sends a PPPoE Active Discovery Request
(PADR) packet to the AC, in effect, to accept the service. If the client receives
PADOs from multiple ACs, it selects one based on the name or services offered.
4. When the AC receives the PADR, it sends a PPPoE Active Discovery Session-
confirmation (PADS) packet that confirms the connection and provides a session ID,
which is used throughout the session.
After the discovery stage is complete and the connection has been established, the client and
AC move on to the PPP session stage. During the session stage, point-to-point
communications between the client and AC are carried out just like any PPP encapsulation.
The Ethernet packets themselves are sent unicast.
At any point during the session, either the AC or client can send a PPPoE Active Discovery
Termination (PADT) packet to end the session. When the client or AC receives the PADT, no
further PPP traffic is allowed during that session.
How is PPPoE configured?
Some ISPs supply their customers with broadband modems that have the PPPoE
connections already configured. In some cases, however, administrators might need to set up
the connection manually. For this, they will need to know the PPPoE username, password
and maximum transmission unit (MTU) size. The ISP should provide the customer with the
username and password, but administrators are responsible for the MTU sizing.
Networks must be configured with the correct MTU size to work properly. The size is
specified in octets -- eight-bit bytes -- and determines the maximize size packet or frame that
can be sent across a network. TCP uses MTU when transmitting packets between devices
connected to the internet.
An MTU size that's too large might result in retransmissions if the packet encounters
a router that can't handle the packet size. An MTU size that's too small can result in more
header overhead and a greater number of acknowledgements that need to be sent and
received. The recommended MTU for a network interface connected to a PPPoE network is
generally a maximum of 1492.
There might also be times when users need to configure PPPoE connections directly from
their computers, such as when a bridging modem is set up for passthrough PPPoE
connectivity. In this case, users must manually configure the PPPoE connections.
Fortunately, major operating systems, such as macOS, Linux and Windows, include native
PPPoE support, so setting up the connection is fairly straightforward. However, users will
need the PPPoE account information -- service name, username and password -- which is
typically provided by the ISP. Once they set up their connections, they should not need to
bother with it again, unless they upgrade their systems or perform other operations that
impact the connection.
PPPoE vs. DHCP
Dynamic Host Configuration Protocol (DHCP) is often compared to PPPoE or mentioned
within the same context. DHCP is a communications protocol that runs at the TCP/IP
application layer. It lets network administrators centrally manage and automate the
assignment of IP addresses across a network. It also lets them monitor and distribute IP
addresses from a central point and automatically send new IP addresses when computers
plug in to other network locations.
DHCP allocates unique IP addresses to network devices so that data packets can be
delivered back and forth. The DHCP architecture is typically made up of DHCP clients, DHCP
servers and DHCP relay agents. Without DHCP, network administrators must manually
configure IP addresses when adding or moving devices from one subnet to another -- or
come up with another solution.
Unlike DHCP, PPPoE encapsulates network traffic based on credentialed access. Once a
session is established, IP addresses can be assigned to client devices. PPPoE also includes
authentication capabilities that enable ISPs to control and monitor access. However, PPPoE
must be configured correctly before users can connect to the internet.
In general, PPPoE serves a much different purpose from DHCP. It facilitates authenticated
PPP communications on an Ethernet network, whereas DHCP dynamically allocates IP
addresses without requiring authentication.
