This article will show you how you can configure PPPoE on Ethernet.

PPPoE is a protocol which encapsulates PPP frames in Ethernet frames. PPPoE is used because PPP has the option to authenticate a user using a username and a password via any of the PAP or CHAP authentication methods.

PPPoE on Ethernet feature enhances Point-to-Point Protocol over Ethernet (PPPoE) by being able to add direct connection to actual Ethernet interfaces.

The fact that Ethernet is a shared medium; it can be used to serve multiple users to open PPP sessions.

For detailed information about this you can go over this resource from Cisco website: PPPoE on Ethernet

Regarding the simulation, you have two files:

  • configuring_pppoe _init.pkt – contains the initial topology. All needed physical connections are configured.
  • configuring_pppoe_final.pkt – this is the final configuration with what you should have configured. You can use this file to compare your configuration.

Regarding the topology, the subnets between the router and the testing server and between the router and LAN are written on the diagram.

On the subnet between the router and the server, the router’s interface IP is and the server has the IP address

Everything is connected, as it is shown on the diagram, and you would just have to configure the router.

Before you go ahead and start configuring, in case you are required, use this information:

  • use as DHCP pool for PPPoE clients the range –
  • name the DHCP pool DHCP_PPPoE
  • use the username and password: pppoe/cisco
  • name the VPDN(virtual private dial-up networking) group GROUP

Task 1 requirements

  1. Enable PPPoE on the LAN interface.
  2. Create a Virtual-Template interface.
  3. Enable IP on the Virtual-Template interface without assigning a specific IP. Use the LAN interface.
  4. Use DHCP to assign an IP address to any remote peer connecting to this interface.
  5. Use CHAP authentication.
  6. Enable VPDN.
  7. Associates a VPDN group to a customer or VPDN profile.
  8. Create an accept dial-in VPDN group.
  9. Specifies the VPDN group that will be used to establish PPPoE sessions.
  10. Specifies which virtual template will be used to clone virtual access interfaces.
  11. Create the DHCP pool.
  12. Create the username that will be used to connect via PPPoE.

Task 1 verification

  1. Connect to PC1 and from Desktop tab, use PPPoE dialer.
  2. Use the username/password: pppoe/cisco and a pop-up window should tell you that you are connected.
  3. From Desktop tab, use Command Prompt and issue a ping to towards the server. This should be successful.
  4. From Desktop tab, use Command Prompt and issue the command ‘ipconfig’. Confirm that you were assigned an IP address from the range –
  5. Once you’re logged in, check the logs on the router and you should see something similar to this:

    %LINK-5-CHANGED: Interface Virtual-Access1.1, changed state to up
    %LINEPROTO-5-UPDOWN: Line protocol on Interface Virtual-Access1.1, changed state to up

Task 1 hints

  1. Use the command ‘pppoe enable’ on WAN interface to enable PPPoE.
  2. Use the command ‘interface Virtual-Template 1’ to configure the Virtual-Template interface.
  3. Use the command ‘ip unnumbered FastEthernet0/1’ to assign an IP on the Virtual-Template interface.
  4. Use the command ‘peer default ip address pool DHCP_PPPoE’ to assign to an IP address to any remote peer connecting to interface Virtual-Template1.
  5. Use the command ‘ppp authentication chap’ to specify the PPP authentication.
  6. Use the command ‘vpdn enable’.
  7. Use the command ‘vpdn-group GROUP’ to associate a VPDN group to a customer.
  8. Use the command ‘accept-dialin’.
  9. Use the command ‘protocol pppoe’ to specify that the VPDN group will be used to establish PPPoE sessions.
  10. Use the command ‘virtual-template 1’ to specify which interface will be used to clone the virtual access interface.
  11. Use the command ‘ip local pool DHCP_PPPoE’ to create the DHCP pool.
  12. Use the command ‘username pppoe password 0 cisco’ to create the username used for PPPoE.

As you can see, PPPoE on Ethernet has a pretty complex configuration. You need to know the exact steps, in order to configure this. It’s very important to understand the pieces that make up the configuration and how they are referenced to each other.