A packet forwarding apparatus with a function of registering packet forwarding control information for each user terminal into a user management table during PPPoE connection and authentication phases in which the apparatus carries out predetermined communication procedures with each user terminal. During DHCP and IP forwarding phases following the authentication phase, the packet forwarding apparatus controls packet forwarding based on the user management table. Packets are forwarded in the form of PPPoE frame until the authentication phase is completed and packets are forwarded in the form of Ethernet frame in the DHCP and IP forwarding phases.