PPPoE in networking is derived from point-to-point protocol and the only difference is that it is Point-to-point protocol over Ethernet. Commonly used in DSL services and networks with multiple users connected over a DSL modem using Ethernet in the local network. PPPoE allows the devices on Ethernet modem to established connections from point-to-point creating a secure way to transfer data. ISP or telephone companies also have their use for connecting with users and keeping the individuals under regulation. This allows them to separate the users and keep the network and services under control for each of them to change services any time they have to.

Different users or subscribers are provided different services by the same ISP and company with PPPoE and prepaid services are also possible with it. For large scale such as an ISP with multiple users connected to them and taking different services, it is useful at all levels. Changes in speed, services, and subscription can be done without affecting others connecting on the Ethernet is possible with PPPoE.