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INFO: What is PPPoE?

Point-to-Point Protocol over Ethernet, or PPPoE, is a connection protocol used mainly by Internet Service Providers (ISPs) to give access to Digital Subscriber Line (DSL) high speed internet service. It increases the capability of the Point-to-Point Protocol (PPP) by allowing a connection over Ethernet. PPPoE also uses the same standards of authentication, encryption, and compression as PPP.

PPPoE encapsulates PPP frames inside Ethernet frames to transmit data from the Internet to a DSL modem, which is then translated into data your computer understands, when using the provided software.

The main benefits of PPPoE are the ISP is able to manage their IP addresses and user tracking in a very similar fashion to the traditional dial-up service.

If you have used a dial-up service, the process of signing in with a username and password to initiate an internet connection is the same. This process does offer better security and some level of control to the home user. Depending on your point of view, this last point may be more of a drawback than a benefit.

The main drawback of PPPoE is it uses more network overhead or bandwidth because of the tunneling nature of the connection. PPPoE uses primarily dynamic addressing so there are limits to the ability to run web, ftp, or other types of servers at home. If you are considering the use of Internet Connection Sharing (ICS) there may be additional adjustments that need to be made regarding the connection. Consult your ISP.