A system and method for authentication for configuring a customer premises equipment (CPE) in a service provider network. In a multiple dwelling unit (MDU) a customer device (e.g., voice over Internet protocol (VOIP) phone) can be configured with CPE functionality, thereby enabling the customer device CPE to support the provision of service to multiple additional customer devices in a customer premises. A dedicated CPE device is thereby eliminated from the service provider network. The customer device CPE can be designed to support a form of authentication (e.g., Layer 2, Layer 3) that would be sufficient for access by the multiple additional customer devices to various network services.