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4.4.3 PPPoE
PPPoE provides service providers similar billing and access control as present in dial-
up services. In addition, with direct support to Ethernet it provides a low cost
solution to supporting multiple hosts at the customer premises. PPPoE provides
session authentication using either Password Authentication Protocol (PAP) or
Challenge Handshake Authentication Protocol (CHAP). Session accounting is possible
and conservation of bandwidth can be done by closing down unused sessions. By
utilizing PPP, link and network parameters are easily negotiated between the
IAD/Router and the ISP.
When using PPPoE, the system is assigned an IP address from the Internet Service
Provider as part of establishing the network connection. The system can be
configured as a DHCP server for its LAN and NAT can be used to translate private
addresses to public addresses. In this way, computers in the LAN do not have to
have their own public IP addresses.
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