Ch.

3 – Point-to-Point Protocol
(PPP)

CCNA 4 version 3.0

Overview

• Explain serial communication

• Describe and give an example of TDM
• Identify the demarcation point in a WAN
• Describe the functions of the DTE and DCE
• Discuss the development of HDLC encapsulation
• Use the encapsulation hdlc command to configure HDLC
• Troubleshoot a serial interface using the show interface and show controllers
commands
• Identify the advantages of using PPP
• Explain the functions of the Link Control Protocol (LCP) and the Network Control
Protocol (NCP) components of PPP
• Describe the parts of a PPP frame
• Identify the three phases of a PPP session
• Explain the difference between PAP and CHAP
• List the steps in the PPP authentication process
• Identify the various PPP configuration options
• Configure PPP encapsulation
• Configure CHAP and PAP authentication
• Use show interface to verify the serial encapsulation
• Troubleshoot any problems with the PPP configuration using debug PPP
Rick Graziani graziani@[Link] 2
Serial Communications

• WAN technologies are based on serial transmission at the physical

layer.
• This means that the bits of a frame are transmitted one at a time over
the physical medium.
• Some of the many different serial communications standards are the
following:
– RS-232-E
– V.35
– High Speed Serial Interface (HSSI)
Rick Graziani graziani@[Link] 3
Time Division Multiplexing

• Time-Division Multiplexing (TDM) is the transmission of several

sources of information using one common channel, or signal, and then
the reconstruction of the original streams at the remote end.
• In TDM, the output timeslot is always present whether or not the TDM
input has any information to transmit.
• One TDM example is Integrated Services Digital Network (ISDN).
ISDN basic rate (BRI) has three channels consisting of two 64 kbps B-
channels (B1 and B2), and a 16 kbps D-channel.
• The TDM has nine timeslots, which are repeated.
Rick Graziani graziani@[Link] 4
Demarcation Point – U.S.

• The demarcation point, or "demarc" as it is commonly known, is the

point in the network where the responsibility of the service provider or
"telco" ends.
• In the United States, a telco provides the local loop into the customer
premises and the customer provides the active equipment such as the
channel service unit/data service unit (CSU/DSU) on which the local
loop is terminated.
• This termination often occurs in a telecommunications closet and the
customer is responsible for maintaining, replacing, or repairing the
equipment.
Rick Graziani graziani@[Link] 5
Demarcation Point – International

• In other countries around the world, the network terminating unit

(NTU) is provided and managed by the telco.
• This allows the telco to actively manage and troubleshoot the local loop
with the demarcation point occurring after the NTU.
• The customer connects a customer premises equipment (CPE) device,
such as a router or frame relay access device, into the NTU using a
V.35 or RS-232 serial interface.

Rick Graziani graziani@[Link] 6

DTE-DCE

• Many standards have been developed to allow DTEs to

communicate with DCEs.
• The Electronics Industry Association (EIA) and the
International Telecommunication Union
Telecommunications Standardization Sector (ITU-T) have
been most active in the development of these standards.

Rick Graziani graziani@[Link] 7

DTE-DCE

• The DTE-DCE interface for a particular standard defines the following

specifications:
• Mechanical/physical – Number of pins and connector type
• Electrical – Defines voltage levels for 0 and 1
• Functional – Specifies the functions that are performed by assigning
meanings to each of the signaling lines in the interface
• Procedural – Specifies the sequence of events for transmitting data

Rick Graziani graziani@[Link] 8

DTE-DCE

DTE Cable

• If two DTEs must be connected together, like two computers or two

routers in the lab, a special cable called a null-modem is necessary to
eliminate the need for a DCE.
• For synchronous connections, where a clock signal is needed, either
an external device or one of the DTEs must generate the clock signal.
• To support higher densities in a smaller form factor, Cisco has
introduced a smart serial cable.
• The serial end of the smart serial cable is a 26-pin connector
significantly more compact than the DB-60 connector.
Rick Graziani graziani@[Link] 9
HDLC Encapsulation

• In 1979, the ISO agreed on HDLC as a standard bit-oriented data link

layer protocol that encapsulates data on synchronous serial data links.
• Since 1981, ITU-T has developed a series of HDLC derivative
protocols.
• The following examples of derivative protocols are called link access
protocols:
– Link Access Procedure, Balanced (LAPB) for X.25
– Link Access Procedure on the D channel (LAPD) for ISDN
– Link Access Procedure for Modems (LAPM) and PPP for modems
– Link Access Procedure for Frame Relay (LAPF) for Frame Relay
Rick Graziani graziani@[Link] 10
HDLC Encapsulation

• Standard HDLC does not inherently support multiple protocols on a

single link, as it does not have a way to indicate which protocol is being
carried.
• Cisco offers a proprietary version of HDLC.
• The Cisco HDLC frame uses a proprietary ‘type’ field that acts as a
protocol field.
• HDLC is the default Layer 2 protocol for Cisco router serial interfaces.
• PPP actually uses HDLC as a basis for encapsulating datagrams.

Rick Graziani graziani@[Link] 11

Configuring HDLC

• The default encapsulation method used by Cisco devices

on synchronous serial lines is Cisco HDLC.
• Cisco HDLC is a point-to-point protocol that can be used
on leased lines between two Cisco devices.
• When communicating with a non-Cisco device,
synchronous PPP is a more viable option.
Rick Graziani graziani@[Link] 12
Troubleshooting a serial interface

Rick Graziani graziani@[Link] 13

Most of these commands will not make sense
until we discuss PPP and Frame Relay
• debug serial interface – Verifies whether HDLC keepalive packets are
incrementing. If they are not, a possible timing problem exists on the interface
card or in the network.
• debug arp – Indicates whether the router is sending information about or
learning about routers (with ARP packets) on the other side of the WAN cloud.
Use this command when some nodes on a TCP/IP network are responding, but
others are not.
• debug frame-relay lmi – Obtains Local Management Interface (LMI)
information which is useful for determining whether a Frame Relay switch and
a router are sending and receiving LMI packets.
• debug frame-relay events – Determines whether exchanges are
occurring between a router and a Frame Relay switch.
• debug ppp negotiation – Shows Point-to-Point Protocol (PPP) packets
transmitted during PPP startup where PPP options are negotiated.
• debug ppp packet – Shows PPP packets being sent and received. This
command displays low-level packet dumps.
• debug ppp – Shows PPP errors, such as illegal or malformed frames,
associated with PPP connection negotiation and operation.
• debug ppp authentication – Shows PPP Challenge Handshake
Authentication Protocol (CHAP) and Password Authentication Protocol (PAP)
packet exchanges.
Rick Graziani graziani@[Link] 14
PPP
PPP layered architecture

• PPP contains two sub-protocols:

– Link Control Protocol – Used for establishing the point-to-point
link.
• Negotiate and setup control options on the WAN data link.
– Network Control Protocol – Used for configuring the various
network layer protocols.
• Encapsulate and negotiate options for multiple network layer
protocols.
• The LCP sits on top of the physical layer and is used to
establish, configure, and test the data-link connection.
Rick Graziani graziani@[Link] 16
LCP

mk k dc ma hoa
mk duoc ma hoa

Also: PPP callback

• LCP is used to automatically agree upon encapsulation format options.

Rick Graziani graziani@[Link] 17
LCP

• LCP will also do the following:

– Handle varying limits on packet size
– Detect common misconfiguration errors
– Terminate the link
– Determine when a link is functioning properly or when it
is failing
Rick Graziani graziani@[Link] 18
PPP Session Establishment

• PPP session establishment progresses through three

phases:
– link establishment
– authentication
– network layer protocol phase

Rick Graziani graziani@[Link] 19

PPP Session Establishment (Detail)

1. Link establishment - (LCPs)

2. Authentication - Optional (LCPs)
3. Link quality determination - Optional (LCPs)
4. Network layer protocol configuration (NCPs)
5. Link termination (LCPs)

Rick Graziani graziani@[Link] 20

Link-establishment phase

• In this phase each PPP device sends LCP frames to configure and
test the data link.
• LCP frames contain a configuration option field that allows devices to
negotiate the use of options such as the maximum transmission unit
(MTU), compression of certain PPP fields, and the link-
authentication protocol.
• If a configuration option is not included in an LCP packet, the default
value for that configuration option is assumed.
• Before any network layer packets can be exchanged, LCP must first
open the connection and negotiate the configuration parameters.
• This phase is complete when a configuration acknowledgment frame
has been sent and received.
Rick Graziani graziani@[Link] 21
Authentication Phase (Optional)

• After the link has been established and the authentication protocol
decided on, the peer may be authenticated.
• Authentication, if used, takes place before the network layer protocol
phase is entered.
• As part of this phase, LCP also allows for an optional link-quality
determination test.
– The link is tested to determine whether the link quality is good
enough to bring up network layer protocols

Rick Graziani graziani@[Link] 22

Network Layer Protocol Phase

• In this phase the PPP devices send NCP packets to choose and
configure one or more network layer protocols, such as IP.
• Once each of the chosen network layer protocols has been configured,
packets from each network layer protocol can be sent over the link.
• If LCP closes the link, it informs the network layer protocols so that
they can take appropriate action.
• The show interfaces command reveals the LCP and NCP states
under PPP configuration.
• The PPP link remains configured for communications until LCP or NCP
frames close the link or until an inactivity timer expires or a user
intervenes.
Rick Graziani graziani@[Link] 23
PPP authentication protocols

Encrypted password
Repeated challenges

1. Link establishment - (LCPs)

2. Authentication - Optional (LCPs)
3. Link quality determination - Optional (LCPs)
4. Network layer protocol configuration (NCPs)
5. Link termination (LCPs)
Rick Graziani graziani@[Link] 24
Password Authentication Protocol (PAP)

• PAP provides a simple method for a remote node to establish its

identity, using a two-way handshake.
• After the PPP link establishment phase is complete, a
username/password pair is repeatedly sent by the remote node
across the link until authentication is acknowledged or the connection
is terminated.
• PAP is not a strong authentication protocol.
• Passwords are sent across the link in clear text and there is no
protection from playback or repeated trial-and-error attacks.
• The remote node is in control of the frequency and timing of the login
attempts.
Rick Graziani graziani@[Link] 25
Challenge Handshake Authentication
Protocol (CHAP)

• CHAP is used at the startup of a link and periodically verifies the

identity of the remote node using a three-way handshake.
• After the PPP link establishment phase is complete, the local router
sends a "challenge" message to the remote node.
• The remote node responds with a value calculated using a one-way
hash function, which is typically Message Digest 5 (MD5).
• This response is based on the password and challenge message.
• The local router checks the response against its own calculation of the
expected hash value.
• If the values match, the authentication is acknowledged, otherwise the
connection is immediately terminated.
Rick Graziani graziani@[Link] 26
Challenge Handshake Authentication
Protocol (CHAP)

• CHAP provides protection against playback attack through the use of a

variable challenge value that is unique and unpredictable.
• Since the challenge is unique and random, the resulting hash value will
also be unique and random.
• The use of repeated challenges is intended to limit the time of
exposure to any single attack.
• The local router or a third-party authentication server is in control of the
frequency and timing of the challenges.

Rick Graziani graziani@[Link] 27

CHAP Operation

Note: A simpler version will be shown when we configure CHAP.

Rick Graziani graziani@[Link] 28

LCP establishes and negotiates the link

1. The call comes in to HQ. The incoming interface is configured with the
ppp authentication chap command.
2. LCP negotiates CHAP and MD5.
3. A CHAP challenge from HQ to the calling router is required on this
call.

Rick Graziani graziani@[Link] 29

CHAP Challenge

This figure illustrates the following steps in the CHAP authentication

between the two routers:
1. A CHAP challenge packet is built with the following characteristics:
– 01 = challenge packet type identifier.
– ID = sequential number that identifies the challenge.
– random = a reasonably random number generated by the router.
– HQ = the authentication name of the challenger.
2. The ID and random values are kept on the called router.
3. The challenge packet is sent to the calling router. A list of outstanding
challenges is maintained.
Rick Graziani graziani@[Link] 30
Receipt of the
CHAP Challenge
• This diagram illustrates the
receipt and MD5 processing
of the challenge packet from
the peer.
• The router processes the
incoming CHAP challenge
packet in the following
manner:

1. The ID value is fed into the MD5 hash generator.

2. The random value is fed into the MD5 hash generator.
3. The name HQ is used to look up the password. The router looks for an
entry matching the username in the challenge. In this example, it looks
for:
username HQ password boardwalk
4. The password is fed into the MD5 hash generator.
5. The result is the one-way MD5-hashed CHAP challenge that will be
sent back in the CHAP response.

Rick Graziani graziani@[Link] 31

CHAP Response

• This diagram illustrates

how the CHAP response
packet sent to the
authenticator is built.
• The following steps are
shown in this figure:

1. The response packet is assembled from the following components:

– 02 = CHAP response packet type identifier.
– ID = copied from the challenge packet.
– hash = the output from the MD5 hash generator (the hashed
information from the challenge packet).
– SantaCruz = the authentication name of this device. This is
needed for the peer to look up the username and password entry
needed to verify identity (this is explained in more detail below).
2. The response packet is then sent to the challenger.
Rick Graziani graziani@[Link] 32
Receive CHAP
Response
• This diagram shows how the
challenger processes the
response packet.
• The CHAP response packet is
processed (on the
authenticator) in the following
manner:
1. The ID is used to find the original challenge packet.
2. The ID is fed into the MD5 hash generator.
3. The original challenge random value is fed into the MD5 hash generator.
4. The name SantaCruz is used to look up the password from one of the
following sources:
– Local username and password database
• username SantaCruz password boardwalk
– RADIUS or TACACS+ server.
5. The password is fed into the MD5 hash generator.
6. The hash value received in the response packet is then compared to the
calculated MD5 hash value. CHAP authentication succeeds if the calculated
and the received hash values are equal.
Rick Graziani graziani@[Link] 33
Success
Message Sent
• This diagram
illustrates the success
message being sent to
the calling router.

1. If authentication is successful, a CHAP success packet is built from the

following components:
– 03 = CHAP success message type.
– ID = copied from the response packet.
– “Welcome in” is simply a text message providing a user-readable
explanation.
2. If authentication fails, a CHAP failure packet is built from the following
components:
– 04 = CHAP failure message type.
– ID = copied from the response packet.
– “Authentication failure” or other text message, providing a user-
readable explanation.
3. The success or failure packet is then sent to the calling router.
Rick Graziani graziani@[Link] 34
Configuring PPP

Router#configure terminal
Router(config)#interface serial 0/0
Router(config-if)#encapsulation ppp

• Enables PPP encapsulation on serial interface 0/0

Rick Graziani graziani@[Link] 35

Configuring PPP

DTE [Link]/24 DCE

.2/S0 Serial .1/S0
interface Serial0 interface Serial0
ip address [Link] [Link] ip address [Link] [Link]
encapsulation ppp encapsulation ppp

Rick Graziani graziani@[Link] 36

Verifying PPP

LCP
NCP

Rick Graziani graziani@[Link] 37

Configuring Authentication (PAP or CHAP)

Encrypted password
Repeated challenges

• Peer routers exchange authentication messages.

• Two alternatives are:
– Password Authentication Protocol (PAP)
– Challenge Handshake Authentication Protocol (CHAP)
• In general, CHAP is the preferred protocol but PAP is still very
common.
Rick Graziani graziani@[Link] 38
Configuring PAP
Rtr(config)# username remote-host password remote-
password
• This needs to match the ppp pap sent-username on the remote host.

Rtr(config-if)# ppp pap sent-username this-host

username password this-host-password
• The passwords do not need to match between the remote and the
host.
• It should not need to be the same as the enable-secret password.

Router(config-if)#ppp authentication {chap | chap pap

| pap chap | pap}
• Two choices: first choice | second choice
• If both methods are enabled, then the first method specified will be
requested during link negotiation.
• If the peer suggests using the second method or simply refuses the
first method, then the second method will be tried.
Rick Graziani graziani@[Link] 39
 Configuring PAP

DTE [Link]/24 DCE

.2/S0 Serial .1/S0
hostname SantaCruz hostname HQ
username HQ password HQpass username SantaCruz password SantaCruzpass

interface Serial0 interface Serial0

ip address [Link] [Link] ip address [Link] [Link]
encapsulation ppp encapsulation ppp
ppp authentication pap ppp authentication pap
ppp pap sent-username SantaCruz ppp pap sent-username HQ
password SantaCruzpass password HQpass

Notes: sent-username and password must match remote username

and password. Passwords are case-sensitive, but usernames are not.
Hostnames are not involved.
Rick Graziani graziani@[Link] 40
PAP 1
PPP establish link

2
Configuration Request: PAP

3
4 Configuration ACK
SantaCruz looks up sent-
username and password for this
interface: 6
sent-username Santa Cruz and
5
password SantaCruzpass
ppp pap sent-username HQ looks up username SantaCruz
SantaCruz password and retrieves the password:
SantaCruzpass
username SantaCruz
Yes, generate ACK password SantaCruzpass
message.
Same?

No, generate NACK

message.

Rick Graziani graziani@[Link] 41

 Configuring CHAP

DTE [Link]/24 DCE

.2/S0 Serial .1/S0
hostname SantaCruz hostname HQ
username HQ password boardwalk username SantaCruz password boardwalk
ppp chap hostname SantaCruz (optional) ppp chap hostname HQ (optional)

interface Serial0 interface Serial0

ip address [Link] [Link] ip address [Link] [Link]
encapsulation ppp encapsulation ppp
ppp authentication chap ppp authentication chap

Notes: Hostnames are involved unless the ppp chap hostname

command is used, and must match remote router’s username
command (not case-sensitive). Passwords are case-sensitive and
must match
Rick Graziani graziani@[Link] 42
CHAP 1
SantaCruz initiates call

2
3
Challenge labeled from HQ
SantaCruz looks up username HQ (authentication name)
and retrieves the password:
username HQ password boardwalk

4 MD5 Hash
Hash Value sent with 6
Password fed 5 authentication name Santa Cruz
into MD5 Hash Hash Value HQ looks up username SantaCruz
and generates a and retrieves the password:
Hash value username SantaCruz password
boardwalk
Password fed
into MD5 Hash
MD5 Hash
and generates a
Yes, generate SUCCESS
Hash value
message.
Same? Hash Value

No, generate FAILURE

message.

Rick Graziani graziani@[Link] 43

Configuring PPP Multilink (MLP)

Router(config)#interface serial 0/0

Router(config-if)#encapsulation ppp
Router(config-if)#ppp multilink

• In some environments, it may be necessary to bundle

multiple serial links to act as single link with aggregated
bandwidth.

Rick Graziani graziani@[Link] 44

 Configuring PPP Multilink (FYI)

hostname SantaCruz hostname HQ

multilink Virtual-Template 1 multilink Virtual-Template 1

interface loopback 0 interface loopback 0

ip address [Link] [Link] ip address [Link] [Link]

interface Virtual-Template1 interface Virtual-Template1

ip unnumbered loopback0 ip unnumbered loopback0
ppp multilink ppp multilink
interface Serial0 interface Serial0
no ip address no ip address
encapsulation ppp encapsulation ppp
ppp multilink ppp multilink
interface Serial1 interface Serial1
no ip address no ip address
encapsulation ppp encapsulation ppp
ppp multilink ppp multilink
interface Serial2 interface Serial2
no ip address no ip address
encapsulation ppp encapsulation ppp
ppp multilink ppp multilink
Rick Graziani graziani@[Link] 45
Configuring PPP Multilink with ISDN

BRI0
BRI0

• PPP Multilink is common with ISDN.

• Prior to MLP, two or more ISDN B channels could not be
used in a standardized way while ensuring sequencing.
MLP is most effective when used with ISDN.
• We will see how this is done when we discuss ISDN.

Rick Graziani graziani@[Link] 46

 Configuring Compression

Router(config)#interface serial 0/0

Router(config-if)#encapsulation ppp
Router(config-if)#compress [predictor|stac|mppc]

• Point-to-point software compression can be configured on serial

interfaces that use PPP encapsulation.
• Compression is performed in software and might significantly affect
system performance.
• Compression is not recommended if most of the traffic consists of
compressed files.
• To configure compression over PPP.

Rick Graziani graziani@[Link] 47

More Information on Compression (FYI)

Cisco supports these types of compression:

 Predictor-Determines whether the data is already compressed. If so,
the data is just sent-no time is wasted trying to compress already
compressed data.
 Stacker-A Lempel-Ziv (LZ)-based compression algorithm looks at the
data, and sends each data type only once with information about
where the type occurs within the data stream. The receiving side uses
this information to reassemble the data stream.

 MPPC-This protocol (RFC 2118) allows Cisco routers to exchange

compressed data with Microsoft clients. MPPC uses an LZ-based
compression algorithm.
 TCP header compression-This type of compression is used to
compress the TCP headers.

Rick Graziani graziani@[Link] 48

TCP Header Compression - RFC 1144 (FYI)

• It is supported on serial lines by using HDLC, PPP, or SLIP

encapsulation.
• You must enable the compression on both ends of the connections for
TCP header compression to work.
• Only TCP headers are compressed-UDP headers are not affected.
• The data is not compressed, just the TCP header.
• The following is the interface command used to activate TCP header
compression:
– Router(config-if)#ip tcp header-compression
– The ip tcp header-compression passive command specifies that
TCP header compression is not required, if the router receives
compressed headers from a destination, then use header
compression for that destination.

Rick Graziani graziani@[Link] 49

More Information on Compression (FYI)

Important notes on compression:

• The highest compression ratio is usually reached with highly compressible text
files.
• Already compressed files such as JPEG graphics or MPEG files, or files that
were compressed with software such as PKZIP or StuffIt, are only compressed
1:1, or even less.
• Trying to compress already compressed data can take longer than transferring
the data without compression.
• Compressing data can cause performance degradation because it is software,
not hardware compression.
• Compression can be CPU or memory intensive.
• Predictor is more memory intensive and less CPU intensive, whereas Stacker
and MPPC are more CPU intensive and less memory intensive. Memory
intensive means that an extra memory allowance is required.

Rick Graziani graziani@[Link] 50

Error Detection

Router(config)#interface serial 0/0

Router(config-if)#encapsulation ppp
Router(config-if)#ppp quality percentage

• Link Quality Monitoring (LQM) is available on all serial interfaces

running PPP.
• LQM will monitor the link quality, and if the quality drops below a
configured percentage, the link will be taken down.
• The percentages are calculated for both the incoming and outgoing
directions.

Rick Graziani graziani@[Link] 51

Load Balancing

Router(config)#interface serial 0/0

Router(config-if)#encapsulation ppp
Router(config-if)#ppp multilink

• Multilink PPP provides load balancing over the router interfaces that
PPP uses.
• Packet fragmentation and sequencing, as specified in RFC 1717,
splits the load for PPP and sends fragments over parallel circuits.
• In some cases, this “bundle” of multilink PPP pipes functions as a
single logical link, improving throughput and reducing latency between
peer routers.
• Prior to MLP, two or more ISDN B channels could not be used in a
standardized way while ensuring sequencing. MLP is most effective
when used with ISDN.

Rick Graziani graziani@[Link] 52

 debug ppp
negotiation
Router#debug ppp negotiation
PPP protocol negotiation debugging is on
. . .
BR0:1 LCP: State is Open
. . .
PPP: Phase is AUTHENTICATING
. . .
BR0:1 IPCP: State is Open
. . .

• The debug ppp negotiation command enables you to view the PPP
negotiation transactions, identify the problem or stage when the error
occurs, and develop a resolution.
• During PPP negotiation, the link goes through several phases, as
shown below.
• The end result is that PPP is either up or down.
Rick Graziani graziani@[Link] 53
debug ppp
authentication

• The debug ppp authentication command displays

the authentication exchange sequence.
• With two-way authentication configured, each router
authenticates the other.
• Messages appear for both the authenticating process and
the process of being authenticated.
Rick Graziani graziani@[Link] 54
Host Routes and PPP

Situation: When running PPP with PAP between two routers, RouterA and
RouterB.

Question: When doing "show ip route" on RouterA, the routing table shows the
correct network between RouterA and RouterB, BUT also shows the host ip
address of RouterB as a directly connected network ("C") directly connected).
Why is this happening?

Answer:
What you are seeing is normal because when the link negotiates ppp parameters,
in the IPCP negotiation, they decide what IP addresses are used between
them. After completion the IP address of the remote end is added in as a
connected host route, which is what you are seeing in your routing table.
This is negotiated in IPCP which is the "NCP" part of PPP negotiation and
happens after authentication. If you need more info, look up the RFC for PPP
: 1661

Rick Graziani graziani@[Link] 55