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Why move to L2TPv3? (Cont.) Cons of L2TPv2 as compared to L2TPv3:
Tunnel/Session Setup latency:

L2TP: SCCRQ, SCCRP, SCCCN, ICRQ, ICRP, ICCN
PPP LCP
PPP CHAP (per-user authentication is optional)
IPCP

Since L2TPv3 offers the option to tunnel IP frames directly without PPP, using L2TPv3 can eliminate PPP overhead
PPT Version