Prestige 314 PLUS Broadband Sharing Gateway with 4-Port Switch

Diagram 1 Single-PC per Modem Hardware ConfigurationHow PPPoE Works

The PPPoE driver makes the Ethernet appear as a serial link to the PC and the PC runs PPP over it, while the modem bridges the Ethernet frames to the Access Concentrator (AC). Between the AC and an ISP, the AC is acting as a L2TP (Layer 2 Tunneling Protocol) LAC (L2TP Access Concentrator) and tunnels the PPP frames to the ISP. The L2TP tunnel is capable of carrying multiple PPP sessions.

With PPPoE, the VC (Virtual Circuit) is equivalent to the dial-up connection and is between the modem and the AC, as opposed to all the way to the ISP. However, the PPP negotiation is between the PC and the ISP.

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PPPoE