What is PPPoE on a router: how it works and its features

Most Internet Service Providers (ISPs) from all over the world offer broadband Internet subscriptions. Some of them do this through a technology called PPPoE (Point-to-Point Protocol over Ethernet). However, even if you know how to configure a PPPoE connection at home, you still probably don’t know what PPPoE means or how PPPoE works. If you want to understand what PPPoE is, then you should read this article. Here the official will explain this concept as clearly as possible. Let’s get started.

Read also: What is a VPN and how does it work?

What is PPPoE?

PPOE stands for Point-to-Point Protocol over Ethernet. PPPoE is a network configuration used to establish PPP connections over the Ethernet protocol. Usually used to establish a DSL Internet connection. Since DSL modems are usually connected to a computer via an Ethernet connection, a standard dial-up PPP connection cannot be used. Therefore, PPP over Ethernet allows a computer to connect to an Internet Service Provider (ISP) via a DSL modem.

History of PPPoE

according to WikipediaPPPoE was developed by UUNET, Redback Networks (now Ericsson), and RouterWare (now Wind River Systems) in the 2000s, and became popular a few years later.

Point-to-Point Protocol is a network protocol that allows communication between two computers using a serial interface. This protocol was commonly used before the 2000s when dial-up Internet connections were widely used. At that time, the most common situation that a home user PPP would use was to establish a connection between their computer and a server from a carrier, using a modem and a phone line. This is called a dial-up connection, and it’s a way for people to access the Internet.

However, because the Internet and technology is growing rapidly from time to time. After a few years, the use of a dial-up connection was no longer effective, and an Internet connection with a speed of 28 or 56 kbit / s was unacceptable. It is also worth noting that older dial-up connections using the PPP protocol can only connect one PC to the ISP’s server. As businesses and home users want to connect more than one computer to the Internet at the same time, but also due to the rapid growth of the Internet and the demand for higher network speeds, new network protocols must be developed. This is when PPPoE came out.

How does PPPoE work

ISPs usually use PPPoE to provide an internet connection to their customers. To help you understand how PPPoE is used, here is a real-world example of how it works:

Think of an old phone call as a phone conversation between you and your boss. You can only participate in the conversation. But what if your boss wants to talk to all of your team members? If your conversation is a phone call, all of your team should gather around the same handset. It would be an ineffective conversation, wouldn’t it? The old PPP network protocol was like that, and only one-to-one communication was possible.

PPPoE changes that, allowing more client devices to use the same network to connect to a single server. It’s as if your boss is talking to all of your team members, but you’ll have speakers so you don’t have to stick around a tiny earpiece.

Advantages and disadvantages of PPPoE

The advantages of PPPoE are that it is easy to set up and offers important network features, such as authentication, data encryption, and data compression. It also supports multiple computers on a local area network (LAN).

The drawback of PPPoE is that it requires an additional overhead, or additional data, to be transmitted over the Internet connection. A standard PPPoE connection adds 8 bytes of data for each packet sent. While this is only a small portion of packets with an MTU of 1500 bytes, some connections use packets as small as 60 bytes, which means that PPPoE adds over 13% overhead. For this reason, many DSL providers now offer DHCP configurations as well.

PPPoE characteristics

  • Online distributors usually use PPPoE to provide connections to their customers.
  • PPPoE allows multiple clients to connect to a single server using the same network.
  • PPPoE is a network protocol that provides other basic network options such as authentication, encryption, and data compression. For this reason, PPPoE is one of the preferred protocols used by ISPs when dealing with Internet connections. It also allows ISPs to set up and sell various Internet subscriptions.
  • PPPoE uses a unique username and password to set speed limits and to calculate and sometimes filter Internet traffic.


So what is PPPoE is a network protocol sometimes used by broadband modems for DSL internet service. PPPoE allows ISPs to manage access to accounts via usernames and passwords that are often configured on the DSL modem or the router itself and do not require additional software configuration. Essentially, PPPoE provides ISPs with an easier way to keep track of exactly how much bandwidth a user is using.

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