PPP includes a process for assigning Layer 3 attributes using network control protocols (NCPs).
The NCP used to assign IP addresses within a PPP connection is IP Control Protocol (IPCP).
IPCP is described in RFC 1332.
The separation between link establishment and IP address allocation makes it possible to figure
out who the subscriber is before deciding how to treat his session: Either terminate the session
locally or tunnel the session to a wholesaler. The domain name provided in the user’s
credentials enables automated service or ISP selection. This powerful aspect of PPP is a key
reason dictating why PPP will remain the predominant session protocol for providers that are
offering wholesale services to third party ISPs.