For Internet Service Providers (ISPs), managing thousands or even millions of client connections requires a robust and scalable solution. While simpler methods exist, many ISPs still rely on PPPoE (Point-to-Point Protocol over Ethernet) for its excellent control, billing integration, and session management capabilities.
From an ISP’s perspective, PPPoE offers:
- Authentication: Clients must provide a username and password, ensuring only authorized users access the network.
- Accounting: Detailed usage data (time connected, data transferred) can be logged, crucial for billing.
- Dynamic IP Assignment: IPs can be assigned from a central pool, simplifying network management.
- Session Management: Each client connection is a distinct session, making it easy to monitor and terminate individual users.
This post will guide you through setting up a PPPoE server on a MikroTik router (as an ISP) and then configuring a client MikroTik router to connect to it.
Part 1: Setting up the PPPoE Server (ISP Side)
Let’s assume your ISP router (MikroTik) has an interface connected to your client network (e.g., ether1-clients).
1. Create a PPPoE Server Interface: This tells the router to listen for PPPoE connection requests on a specific interface.
- Go to
PPP > PPPoE Servers. - Click + to add a new server.
- Name:
pppoe-server-clients(or descriptive name) - Interface:
ether1-clients(the interface connected to your client network). - Default Profile:
default-encryption(We’ll create a custom one next). - Check
One Session Per Hostto prevent multiple connections from a single device.
2. Create an IP Pool for Clients: This pool will assign IP addresses to your connected PPPoE clients.
- Go to
IP > Pool. - Click + to add a new pool.
- Name:
pppoe-client-pool - Addresses:
10.10.10.100-10.10.10.200(Example range; adjust for your network).
3. Create a PPPoE Profile: Profiles define settings for client connections, such as IP addresses, DNS servers, and rate limits.
- Go to
PPP > Profiles. - Click + to add a new profile.
- Name:
client-profile - Local Address:
10.10.10.1(This will be the gateway IP for clients) - Remote Address:
pppoe-client-pool(Select the IP pool created earlier) - DNS Server:
8.8.8.8, 8.8.4.4(Google DNS or your preferred DNS servers) - Rate Limit (rx/tx):
10M/10M(Optional: Set bandwidth limits for this profile.10Mfor 10 Mbps.) - Only One:
yes(Ensures only one active connection per user) - Optionally, you can enable
Change TCP MSStoyesfor better performance.
4. Create User Secrets (Client Credentials): Each client needs a unique username and password.
- Go to
PPP > Secrets. - Click + to add a new secret.
- Name:
client1_user - Password:
secure_password123 - Service:
pppoe - Profile:
client-profile
Part 2: Setting up the PPPoE Client (Client Side – MikroTik)
Now, let’s configure the client’s MikroTik router to connect to the ISP’s PPPoE server. Assume the client’s router has its WAN interface connected to the ISP’s network (e.g., ether1-wan).
1. Create a PPPoE Client Interface:
- Go to
Interfaces. - Click + and select
PPPoE Client. - Name:
pppoe-out1(or descriptive name likeISP-WAN) - Interfaces:
ether1-wan(the WAN interface connected to the ISP) - User:
client1_user(The username created on the ISP’s server) - Password:
secure_password123(The password created on the ISP’s server) - Check
Add Default Route(This makes the PPPoE connection the primary internet gateway). - Check
Use Peer DNS(This will automatically get DNS servers from the ISP). - Click OK.
Once the client interface is up, it should get an IP address from the ISP’s pool, and you should see a new route in IP > Routes pointing to the internet.
Part 3: NAT for Client’s Local Network
Most client setups will involve a local network (e.g., 192.168.88.0/24) behind their MikroTik router, requiring NAT (Network Address Translation) to access the internet.
1. Add NAT Rule:
- Go to
IP > Firewall > NAT. - Click + to add a new rule.
- Chain:
srcnat - Out. Interface:
pppoe-out1(The PPPoE client interface) - Action:
masquerade
This rule translates the private IP addresses of devices on the client’s LAN to the public IP assigned by the ISP, allowing them to browse the internet.