Configure a Cisco Router as a PPPoE Client for DSL connectivity

Note: I noticed that on some books no one mentioned the configuration of IP domain lookup command and ISP DNS
options in DHCP server configuration. Without these DSL connection will not work. Also pay attention if DSL connection
did not work, to check the state of all interfaces by using show ip interface brief and make sure to issue no shutdown
command on all of them.

There are two configuration options with integrated DSL functionality in the CPE:

A. PPPoE on Ethernet interfaces—PPPoE functionality is configured on a CPE router with two

Ethernet interfaces. One Ethernet interface is subscriber-facing, the other provider facing.

B. PPPoE on ATM interfaces—PPPoE functionality is configured on a CPE router with one

Ethernet interface and one ATM interface. The Ethernet interface is subscriber-facing whereas
the ATM interface is provider-facing.

A. PPPoE on Ethernet interfaces

DSL configuration brief steps:

1. Internal Ethernet interface configuration
2. External Ethernet interface configuration
3. Dialer interface configuration
4. Configuring Access List
5. NAT/PAT configuration
6. Configuring IP domain Lookup
7. DHCP server services configuration
8. Static default route configuration

DSL configuration detailed steps:

1. Internal Ethernet interface configuration

interface FastEthernet 0/1
description internal interface
ip address 172.16.1.1 255.255.255.0
ip nat inside
no shut

OR (incase you are using Cisco 877 router)

interface Vlan1
description internal interface
ip address 172.16.1.1 255.255.255.0
ip nat inside
no shut

2. External Ethernet interface configuration

Interface FastEthernet 0/0
Description DSL interface
no ip address
pppoe enable
pppoe-client dial-pool-number 1
no shut

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 3. Dialer interface configuration
interface Dialer1
ip address negotiated
ip mtu 1492
ip nat outside
encapsulation ppp
dialer pool 1
ppp authentication chap pap callin
ppp pap sent-username USERNAME password P@ssw0rd (this is the password that ISP gave it to you
ppp chap hostname HOSTNAME (This is the username that ISP gave it to you)
ppp chap password P@ssw0rd
no shut

4. Configuring Access List

ip access-list extended DSL_ACCESSLIST
100 permit ip 10.10.10.0 0.0.0.255 any

5. Configuring NAT/PAT
ip nat inside source list DSL_ACCESSLIST interface dialer 1 overload

6. Configuring IP domain Lookup

ip domain lookup
ip name-server Primary DNS IP address (obtained from your ISP)
ip name-server Secondary DNS IP address (obtained from your ISP)

7. DHCP server services configuration

ip dhcp pool DSL_DHCP
network 10.10.10.0 /29
dns-server Primary DNS IP address Secondary DNS IP address (obtained from your ISP)
default-router 10.10.10.1 (internal VLAN or Ethernet interface Ip address)
import all

8. Static default route configuration

Finally, configure a static default route. It should point to the dialer interface rather than an IP address as in the
below example.

ip route 0.0.0.0 0.0.0.0 dialer 1

B. PPPoE on ATM interfaces

DSL configuration brief steps:

1. Internal Ethernet interface configuration
2. External ATM interface configuration (in case you are using Cisco 877 Router)
3. Dialer interface configuration
4. Configuring Access List
5. NAT/PAT configuration
6. Configuring IP domain Lookup
7. DHCP server services configuration
8. Static default route configuration

DSL configuration detailed steps:

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 1. Internal VLAN interface configuration (using Cisco 877 Router)
interface Vlan1
description internal interface
ip address 172.16.1.1 255.255.255.0
ip nat inside
no shut

OR (if you are using configurable internal Ethernet interface)

interface FastEthernet 0/1

description internal interface
ip address 172.16.1.1 255.255.255.0
ip nat inside
no shut

2. External ATM interface configuration

interface ATM 0
description DSL interface
ip directed-broadcast
ip mask-reply
ip route-cache flow
no ip address
dsl operating-mode auto
pvc 8/35
no shutdown
pppoe-client dial-pool-number 1

3. Dialer interface configuration

interface Dialer1
ip address negotiated
ip mtu 1492
ip nat outside
encapsulation ppp
dialer pool 1
ppp authentication chap pap callin
ppp pap sent-username USERNAME password P@ssw0rd (this is the password that ISP gave it to you
ppp chap hostname HOSTNAME (This is the username that ISP gave it to you)
ppp chap password P@ssw0rd
no shut

4. Configuring Access List

ip access-list extended DSL_ACCESSLIST
100 permit ip 10.10.10.0 0.0.0.255 any

5. Configuring NAT/PAT
ip nat inside source list DSL_ACCESSLIST interface dialer 1 overload

6. Configuring IP domain Lookup

ip domain lookup
ip name-server Primary DNS IP address (obtained from your ISP)
ip name-server Secondary DNS IP address (obtained from your ISP)

7. DHCP server services configuration

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ip dhcp pool DSL_DHCP
network 10.10.10.0 /29
dns-server Primary DNS IP address Secondary DNS IP address (obtained from your ISP)
default-router 10.10.10.1 (internal VLAN or Ethernet interface Ip address)
import all

8. Static default route configuration

Finally, configure a static default route. It should point to the dialer interface rather than an IP address as in the
below example.

ip route 0.0.0.0 0.0.0.0 dialer 1

I apologize if any errors found in the document. If you see any please correct them. No one is perfect.

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