You want to run use PPP encapsulation over a Frame Relay PVC.
To configure PPP over Frame Relay, you need to associate the DLCI with a Virtual Template, which will carry the Layer 3 information. Because PPP fundamentally involves a single connection between two devices, it is most natural to use this feature on point-to-point subinterfaces:
Router1#configure terminal Enter configuration commands, one per line. End with CNTL/Z. Router1(config)#interface Loopback1 Router1(config-if)#ip address 10.1.200.5 255.255.255.252 Router1(config-if)#exit Router1(config)#interface Virtual-Template1 Router1(config-if)#ip unnumbered Loopback1 Router1(config-if)#encapsulation ppp Router1(config-if)#exit Router1(config)#interface Serial0 Router1(config-if)#no ip address Router1(config-if)#encapsulation frame-relay Router1(config-if)#exit Router1(config)#interface Serial0.1 point-to-point Router1(config-subif)#frame-relay interface-dlci 104 ppp Virtual-Template1 Router1(config-fr-dlci)#exit Router1(config-subif)#exit Router1(config)#end Router1#
You can also use this feature directly on a physical interface:
Router2#configure terminal Enter configuration commands, one per line. End with CNTL/Z. Router2(config)#interface Loopback1 Router2(config-if)#ip address 10.1.200.6 255.255.255.252 Router2(config-if)#exit Router2(config)#interface Virtual-Template1 Router2(config-if)#ip unnumbered Loopback1 Router2(config-if)#encapsulation ppp Router2(config-if)#exit Router2(config)#interface Serial0/0 Router2(config-if)#no ip address Router2(config-if)#encapsulation frame-relay Router2(config-if)#frame-relay interface-dlci 105 ppp Virtual-Template1 Router2(config-fr-dlci)#exit Router2(config-if)#exit Router2(config)#end Router2#
RFC 1973 defines the standard for running the Point-to-Point Protocol (PPP) standard over a Frame Relay PVC. Normally you wouldn't want to do this, as the default Frame Relay encapsulation standards discussed in Recipe 10.1 are more than adequate for most situations. However, a PVC that is delivered via a Frame Relay circuit at one location may be converted to an ATM VC inside the carrier's cloud, and could ultimately arrive at another location as a DSL circuit delivered through an Ethernet interface. The only Layer 2 frame format that supports all of these standards is PPP. It is for these types of situations that RFC 1973 was developed.
The router uses Virtual-Template interfaces in an interesting and unusual way. When trying to bring up the PPP link, the router will first clone the Virtual-Template interface to create a Virtual-Access interface. You can see all of these interfaces with the show ip interface brief command:
Router2#show ip interface brief Interface IP-Address OK? Method Status Prot ocol FastEthernet0/0 18.104.22.168 YES NVRAM up up Serial0/0 unassigned YES manual up up BRI0/0 unassigned YES NVRAM administratively down down BRI0/0:1 unassigned YES unset administratively down down BRI0/0:2 unassigned YES unset administratively down down Virtual-Access1 10.1.200.6 YES TFTP up up Virtual-Template1 10.1.200.6 YES TFTP down down Loopback1 10.1.200.6 YES manual up up Router2#
You can see here that the Frame Relay interface or subinterface (interface, in this case) has no IP address. The Layer 3 information representing this Frame Relay PVC is held on the interface Virtual-Access1, which the router dynamically created from the Virtual-Template1 interface:
Router2#show interfaces Virtual-Access1 Virtual-Access1 is up, line protocol is up Hardware is Virtual Access interface Interface is unnumbered. Using address of Loopback1 (10.1.200.6) MTU 1500 bytes, BW 100000 Kbit, DLY 100000 usec, reliability 255/255, txload 1/255, rxload 1/255 Encapsulation PPP, loopback not set Keepalive set (10 sec) DTR is pulsed for 5 seconds on reset LCP Open Open: IPCP Bound to Serial0/0 DLCI 105, Cloned from Virtual-Template1 Last input 00:00:01, output never, output hang never Last clearing of "show interface" counters 00:24:53 Input queue: 0/75/0/0 (size/max/drops/flushes); Total output drops: 0 Queueing strategy: fifo Output queue: 0/40 (size/max) 5 minute input rate 0 bits/sec, 0 packets/sec 5 minute output rate 0 bits/sec, 0 packets/sec 370 packets input, 7372 bytes, 0 no buffer Received 0 broadcasts, 0 runts, 0 giants, 0 throttles 0 input errors, 0 CRC, 0 frame, 0 overrun, 0 ignored, 0 abort 401 packets output, 7240 bytes, 0 underruns 0 output errors, 0 collisions, 0 interface resets 0 output buffer failures, 0 output buffers swapped out 0 carrier transitions Router2#
One of the side benefits of using PPP encapsulation on a Frame Relay PVC like this is you can enforce an extra measure of security by requiring PPP CHAP authentication:
Router1(config)#username Router2 password cookbook Router1(config)#interface Virtual-Template1 Router1(config-if)#ip unnumbered Loopback1 Router1(config-if)#encapsulation ppp Router1(config-if)#ppp authentication chap
Naturally, the authentication method and password must match on the other router:
Router2(config)#username Router1 password cookbook Router2(config)#interface Virtual-Template1 Router2(config-if)#ip unnumbered Loopback1 Router2(config-if)#encapsulation ppp Router2(config-if)#ppp authentication chap
When you do this, the Virtual-Access interfaces remain in a down state until the routers pass PPP authentication. Since the IP address information is not exchanged until the PPP session is established, it is not possible to use Inverse ARP to deduce a good IP address and insert a rogue router into the network. We note, however, that this type of attack is only possible if you don't control the physical security of the router at the remote site.
Finally, we note in passing that we always create a Loopback interface to carry the IP addresses for Virtual-Template interfaces. In this particular example, because we must use separate IP addressing on every PVC, this is not actually necessary. We could have assigned the IP address directly to the Virtual-Template interface. However, we do it this way because Virtual-Template interfaces are also used for other purposes such as dial backup and PPP over ATM. In some cases, you may want to have more than one type of Virtual-Template configuration, but with the same IP addressing. So because of these situations, it is a good general practice to put the IP address on a Loopback interface, as we have done here.
RFC 1973; Recipe 10.1