L2TPv3 pseudowires (emulated circuits) can be used to transport Ethernet, Ethernet VLAN (802.1Q), PPP, HDLC, X.25, ATM (ATM cell-relay and AAL5), and Frame Relay across an IP backbone network.

Enterprises use pseudowires to extend layer-2 circuits over their IP networks. Before diving into the configuration of L2TPv pseudowires, it’s a good idea to take a quick look at how they work.