The PPPoE (Point to Point Protocol over Ethernet) protocol provides extensive user management, network management and accounting benefits to ISPs and network administrators. Currently PPPoE is used mainly by ISPs to control client connections for xDSL and cable modems as well as plain Ethernet networks. PPPoE is an extension of the standard Point to Point Protocol (PPP). The difference between them is expressed in transport method: PPPoE employs Ethernet instead of serial modem connection.
Generally speaking, PPPoE is used to hand out IP addresses to clients based on authentication by username (and also if required, by workstation) as opposed to workstation only authentication where static IP addresses or DHCP are used. It is advised not to use static IP addresses or DHCP on the same interfaces as PPPoE for obvious security reasons.
The PPPoE client and server work over any Layer2 Ethernet level interface on the router - wireless 802.11 (Aironet, Cisco, WaveLan, Prism, Atheros), 10/100/1000 Mbit/s Ethernet, RadioLan and EoIP (Ethernet over IP tunnel).
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