PPPoE vs IPoE: Understanding Broadband Delivery in the UK

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Introduction

As the UK continues its rapid transition from legacy copper networks to full-fibre infrastructure, understanding the fundamental protocols used to deliver broadband services becomes increasingly important. Two primary protocols dominate the landscape: Point-to-Point Protocol over Ethernet (PPPoE) and IP over Ethernet (IPoE). Let’s explore how these protocols shape internet delivery across Britain.

The UK Broadband Landscape

Historical Context

Traditionally, UK internet service providers (ISPs) like BT, TalkTalk, and Sky have relied heavily on PPPoE, particularly for ADSL and VDSL services delivered via the Openreach network. This approach stems from the dial-up era and has carried through to many modern implementations.

PPPoE: The Traditional British Approach

Core Components

  • LAC (L2TP Access Concentrator): Commonly found in BT exchanges, aggregating local PPPoE sessions
  • LNS (L2TP Network Server): Typically located in major UK points of presence (POPs), handling authentication and session management
  • LTS (L2TP Tunnel Switch): Used in larger networks, particularly within BT’s 21CN infrastructure

Typical UK Implementation

PPPoE remains prevalent across Britain’s copper network infrastructure, particularly in scenarios where:

  • Multiple ISPs share Openreach infrastructure
  • Legacy billing systems require PPPoE authentication
  • Residential customers need standard broadband services

Advantages for UK Providers

  1. Seamless integration with existing billing systems
  2. Clear separation between different ISPs on shared infrastructure
  3. Familiar to UK network engineers
  4. Compatible with existing CPE in millions of UK homes

IPoE: The Modern British Alternative

Core Components

  • BNG (Broadband Network Gateway): Increasingly deployed by alt-nets and new full-fibre providers
  • RADIUS: Used by major ISPs for authentication and authorisation
  • DHCP: Typically deployed in regional clusters across the UK

Implementation in the UK Market

IPoE has gained significant traction with:

  • CityFibre’s FTTP deployments
  • Virgin Media’s cable network
  • Various alt-net providers like Hyperoptic and Gigaclear

UK Market Segments

Residential Broadband

  • Traditional Providers: Often use PPPoE on Openreach infrastructure
  • BT Retail
  • Sky Broadband
  • TalkTalk
  • Plusnet
  • Alt-nets and Cable: Typically favour IPoE
  • Virgin Media
  • CityFibre partners
  • Hyperoptic
  • Community Fibre

Business Services

  • FTTP Business Services: Increasingly IPoE-based
  • Leased Lines: Almost exclusively IPoE
  • MPLS Services: Mix of both protocols depending on provider

Technical Considerations for UK Deployments

PPPoE Architecture

Customer Premises → PPPoE Client → LAC (Local Exchange) → LTS (Core) → LNS (POP) → Internet

IPoE Architecture

Customer Premises → DHCP Client → BNG (Metro Node) → Internet

Migration Trends in the UK Market

Full-Fibre Transition

As the UK moves towards its 2025 full-fibre ambitions:

  1. New builds increasingly favour IPoE
  2. Alt-nets typically deploy IPoE from day one
  3. Traditional ISPs maintain hybrid approaches

Regulatory Considerations

  • Ofcom’s requirements for service separation
  • Data retention requirements
  • Competition regulations in the wholesale market

Provider-Specific Approaches

Incumbent Providers

  • BT: Maintains PPPoE for copper services, transitioning to IPoE for some FTTP
  • Virgin Media: Primarily IPoE-based
  • TalkTalk: PPPoE on Openreach, IPoE on own FTTP network
  • Sky: Similar hybrid approach

Alt-Nets

  • Generally favour IPoE for simplified operations
  • Often deploy modern architectures from scratch
  • Better suited to gigabit and multi-gigabit services

Future Outlook for UK Broadband

Industry Trends

  1. Growing shift towards IPoE with FTTP rollout
  2. Legacy PPPoE infrastructure gradually being phased out
  3. Hybrid approaches during transition period
  4. IPv6 deployment driving protocol choices

Recommendations for UK Providers

New Deployments

  1. Consider IPoE for greenfield FTTP projects
  2. Plan for IPv6 from day one
  3. Evaluate authentication requirements against Ofcom guidelines
  4. Consider integration with existing OSS/BSS systems

Legacy Networks

  1. Assess migration costs and benefits
  2. Plan phased transitions
  3. Consider hybrid approaches during transition
  4. Evaluate impact on existing systems and processes

Conclusion

The UK broadband market’s evolution from copper to fibre infrastructure is driving a parallel evolution in delivery protocols. While PPPoE continues to serve millions of connections effectively, particularly on legacy infrastructure, IPoE represents the future for many providers. Understanding both protocols remains crucial for network architects and service providers planning their networks in Britain’s rapidly evolving broadband landscape.