The requirement was to have the Cisco 881 WAN port control the PPPOE connection, and have it's IP as the external IP of the connection. The Cisco 881 however does not have an analog telephone port so as to directly dial the connection. The CPE here that was provided was an Thomson Speedtouch ADSL router. The Cisco WAN port is connected to one of the Thomson ethernet ports.
If the PPPOE connection is configured on the Speedtouch as well as the Cisco 881, then there will be a fight between the two, to control the connection, the result being that the connection will keep dropping, expecting one of the two to dial.
What needs to be done is to setup the Thomson Speedtouch as a bridge, using the Easy Setup wizard on its web interface. This way, the only router that will dial the connection is the Cisco router and hence will receive the external IP of the ADSL connection on its WAN interface.
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