L2TP (Layer 2 Tunneling Protocol)

December 12, 2024

What is L2TP?

L2TP (Layer 2 Tunneling Protocol) is a tunneling protocol that enables transmission of Layer 2 packets over IP networks. It is used for building VPNs, encapsulating PPP, and in provider access schemes.

Where is L2TP used?

  • In corporate VPNs (often with IPsec)
  • By ISPs for remote PPP access
  • In BRAS/BNG scenarios
  • In DSL/FTTH networks as an alternative to PPPoE

How L2TP works

Architecture

  • LAC (L2TP Access Concentrator) — device on the client or provider side
  • LNS (L2TP Network Server) — server on the centralized processing side

Session stages

  1. Establish TCP/IP connection between LAC and LNS
  2. Create and authenticate the L2TP tunnel
  3. Transmit PPP traffic inside UDP
  4. Remote access or subscriber authentication

Advantages of L2TP

  • Low overhead
  • Broad hardware support 
  • Tunneling without encryption possible (useful for CGNAT and DPI)

Disadvantages

  • No encryption without IPsec
  • Vulnerable to spoofing attacks
  • Performance may degrade with NAT

VPN Protocol Comparison

Protocol Encryption Use Case Features
L2TP No (Yes with IPsec) VPN, BNG Easy to deploy
PPTP Weak Deprecated Insecure, unsupported
OpenVPN Strong Corporate VPN Flexible but complex to configure

FAQ

Is L2TP a VPN?

Yes, but it does not encrypt data on its own. It is typically used with IPsec (then called L2TP/IPsec).

Does L2TP work behind NAT?

It’s tricky. Requires NAT-T support (UDP 1701/500/4500).

Why is L2TP better than PPPoE?

Lower overhead, easier to scale, supports session aggregation.

Conclusion

L2TP remains a relevant protocol in networks where Layer 2 tunneling over IP is required. It is easy to set up, scales well, and is widely supported, especially in ISP infrastructures.