This article is designed to explain the difference between Authentication types for your NBN™ service and mentions upcoming changes to how Dynamic IP addressing will work with each authentication type.
NBN™ internet services in Australia typically authenticate using one of two methods:
- PPPoE (Point‑to‑Point Protocol over Ethernet)
- IPoE (IP over Ethernet)
Both methods achieve the same outcome—getting your service online—but the way they authenticate and how they behave can differ.
What is PPPoE?
PPPoE is the traditional authentication method used across NBN services. It requires:
- A username and password
- A PPPoE‑capable modem/router
How PPPoE Works
Your modem establishes a session with the service provider using login credentials. Once authenticated, the service is provisioned and traffic begins to flow.
Advantages
- Widely supported and understood.
- Works with CGNAT, Dynamic IP or Static IP assignments. Also read: Understanding the NBN IP Address Types Available ↗
Considerations
- PPPoE introduces overhead, which can slightly reduce throughput.
- Incorrect username/password is a common cause of connection issues.
- Slightly more configuration required for BYO modem users.
What is IPoE?
IPoE is a modern, simplified authentication method that uses DHCP (Dynamic Host Configuration Protocol) instead of a username and password.
Your modem/router authenticates automatically when it requests an IP address via the WAN port.
How IPoE Works
- Your modem/router is set to DHCP/Automatic IP
- No credentials are required.
- The network assigns an IP address dynamically.
Advantages
The benefits of choosing IPoE to connect to our NBN service include:
- Simplified Setup – No usernames or passwords needed.
- Faster Activation – Connect immediately without waiting for login details.
- More Reliable Connection – Greater stability and efficiency than PPPoE.
- BYO Modem Friendly – If your modem uses DHCP already, no settings change is required.
- Easy Switching – For services activated after the release, you can change between PPPoE and IPoE.
Considerations
- IP assignment options differ slightly from PPPoE.
- We are phasing out Dynamic IP as a option on IPoE connections for new or modified services starting Febuary 2026.
(Dynamic IP will not be available for new/modified IPoE-based NBN services from 12th Febuary 2026). - Alternative options (CGNAT or Static IP) remain available on IPoE-based services.
- Existing customers with Dynamic IP on IPoE will remain supported (grandfathered). Any new modifications to IP Addressing on this grandfathered service will revert to the new rules after 12/02/2026.
Which Authentication Method Should I Choose?
Choose IPoE if you want:
- Quick and simple setup
- Fewer configuration issues
- Improved reliability
- Seamless BYO modem support
- Automatic IP assignment via DHCP
Choose PPPoE if you need:
- Compatibility with legacy hardware or systems
- Dynamic IP options (still available under PPPoE)
- Specific authentication workflows requiring username/password
Frequently Asked Questions
What is the difference between PPPoE and IPoE?
Which method is easier to set up?
Can I switch between PPPoE and IPoE?
Does IPoE support Dynamic IP?
What IP options are available on IPoE?
- CGNAT (default for most users)
- Static IP - requires an additional cost to the base plan fee.
Learn more about the different IP Address types: Understanding the NBN IP Address Types Available ↗
Does PPPoE still support Dynamic IP?
Is IPoE more reliable?
Do I need to change my modem to use IPoE?
What advice is there for transfer service orders from another provider?
We recommend selecting IPoE when migrating NBN services from other providers as most of the common ISPs are already delivering IPoE as a default to customers and migrating a service to us is much more seemless when matching the transfer order with IPoE. Normally a router reboot is all that is required.
