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IP / PPP / PPPoE / Ethernet / ATM AAL5 / ADSL

Though PPP/PPPoE is optional, it is a very logical choice for establishing individual Internet access for each customer over an Ethernet-based network.
The motive is to use PPP's features (see the PPP overview, which you can link to from the Stack page).
PPP doesn't naturally fit over Ethernet since the latter is "Multiple Access".
PPPoE enables the modifications needed by encapsulating PPP packets using the method defined in RFC 2516. It should be mentioned that this method has a higher encapsulation overhead.
PPPoE enables the ISP to monitor and bill each station separately.
With this method the customer need to establish a connection at every session.
See the stack >>

Network Components
Home or office computerTelephone
ADSL ModemSplitter
Voice SwitchSplitter
DSLAM
ATM or Ethernet Network
ISP
Internet