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Cisco with Telekom Malaysia vDSL

Good evening,
 
we are wokring on a project for a company with an office in Kuala Lumpur. The office currently has a VDSL circuit with Telekom Malaysia which has also provided them with a VDSL modem. I've been told that Telekom Malaysia is tagging the traffic and is using VLAN500 to do so. We have decided to use Cisco 2921 for our network, connect it to the VDSL modem and setup VLAN tagging for VLAN500 on the WAN interface of the Cisco but some of our consultants disagree that this will work.
 
My question is; has anyone ever dealt with configuring a Cisco device for a Malaysian ISP and if so, can what I am suggesting be done?
 
Our contact in Malaysia has specified that the router should have an Ethernet WAN interface, VLAN tagging capabilities on the WAN interface and be configured with a PPPoE MTU1492.
 
Thank you
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Teeshirt
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Can you put the vdsl modem on bridge mode ?
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EnQuestPLC

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I believe it already is...

The current setup is the following:

The vDSL modem provided by Telekom Malaysia is connected to a Vyatta firewall which is performing PPPoE, NAT, firewall, etc.

All we need to do is take the Vyatta out of the network and replace it with a Cisco 2921. Plug the Ethernet port of the Cisco to the vDSL modem and set up the same services (plus a couple more) on the Cisco.
If the Vyatta is currently performing PPPoE, NAT, firewall, then the Cisco should definitely work.
I share your optimism and I agree completely. After all, I can't accept the fact that Cisco cannot do what Vyatta (or other cheaper hardware) are doing.

But, what puzzles me is the response from our local (Malaysian) consultant:

".....So if we subscribe to telco A, then the VDSL modem (or fiber BTU) that is provided by telco A is configured to tag into its own VLAN, and not VLANs of other telcos. For example, telco A uses VLAN 500 for data, VLAN 600 for voice and VLAN 700 for IPTV video. And telco B uses VLAN 800 for data, 900 for voice and etc etc.
Therefore it is because of this reason, the telcos don't allow us to meddle with the VDSL modem because this box contains the VLAN parameters that port us back to the rightful ISP.
Anything after the VDSL modem and VLAN untagging, you are free to dictate things your way. So it follows your choice router must either have VLAN untagging capabilities or you can use a standard 802.11q VLAN switch to untag the tunnels for your router. From the best of my knowledge, by itself alone Cisco IOS can do VLAN tagging and untagging at LAN level but not at WAN level....."

The above makes me think that we can indeed set it up but on another email he mentions that Cisco is not capable of performing "virtual VLAN untagging"..
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VLAN 500 is quite confusing  but as per your requirement following configs. will be required:

interface Ethernet
 description WAN link
 bandwidth 2048
 no ip address
 no ip redirects
 duplex auto
 speed auto
 pppoe-client dial-pool-number 1
 no cdp enable
 no shutdown
exit
interface Dialer1
 description WAn link
 bandwidth 2048
! you can use ip address dhcp
 ip address negotiated
 no ip redirects
 no ip unreachables
 no ip proxy-arp
 ip mtu 1492
 encapsulation ppp
 dialer pool 1
 dialer-group 1
 ppp chap hostname <<DSL username>>
 ppp chap password <<DSL password>>
 ppp pap sent-username <<DSL username>> password <<DSL password>>
end
Thank you for the config template guptasan26 !

Why is the VLAN500 confusing? Is there some peculiarity involved in it?
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