This started as a question, with my connection failing to come up, but after a bit of trial and error, the configuration is working, so I've edited it into a solution. Access lists and address translation is not 100% in the config below yet, but it covers the connection setup.

The setup: I have a Cisco router with 2 ethernet ports and another ADSL router with the ATM interface. My service provider offers a static IP for ADSL via an L2TP tunnel (l2tp service ip, shared secret provided, adsl username / password for auth). I want to configure the connection and the tunnel on the Cisco - 1 ethernet port internal (fa0/1), with the L2TP tunnel interface being the external / public IP on the other ethernet port (fa0/0) - but also still maintain a private network between the Cisco and other DSL router.

Internal network: Private network between Cisco and other router: (or could be /30). Other router is configured in PPPoE bridge mode / pass through. L2TP service: Shared secret: 54321 ADSL username / pass: myuser@myisp / mypass

aaa new-model
aaa authentication ppp default local

l2tp-class l2tp_secret
  hello 10
  password 54321

pseudowire-class l2tp_config
  encapsulation l2tpv2
  protocol l2tpv2 l2tp_secret
  ip local interface Dialer1

interface FastEthernet0/0
 description WAN / PPPoE Interface
 ip address
 ip virtual-reassembly
 pppoe enable group global
 pppoe-client dial-pool-number 10

interface FastEthernet0/1
 description LAN
 ip address
 ip nat inside
 ip virtual-reassembly
 ip tcp adjust-mss 1412
 no ip mroute-cache

interface Virtual-PPP1
 description L2TP Tunnel for static IP
 ip address negotiated
 ip mtu 1452
 ip nat outside
 ip virtual-reassembly
 ip tcp adjust-mss 1412
 no cdp enable
 ppp authentication pap callin
 ppp pap sent-username myuser@myisp password 0 mypass
 pseudowire 1 pw-class l2tp_config

interface Dialer1
 ip address negotiated
 encapsulation ppp
 dialer pool 10
 ppp authentication pap callin
 ppp pap sent-username myuser@myisp password 0 mypass
 ppp ipcp route default

ip route Virtual-PPP1
ip route Dialer1

2 Answers 2


I'm not very familiar with Cisco, but is it possible that you need to use "secret" instead of password @l2tp-class?

  • 1
    Hi H1GHL4ND3R. Password works fine in l2tp-class. It was a bad pap username/password issue. I've updated my post to a solution.
    – Brett
    Sep 15, 2015 at 7:57

There was a fair amount of trial and error. The first question to various approaches can be found in the revisions: https://networkengineering.stackexchange.com/posts/22455/revisions

The original post is now a solution, not a question.

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