Techniques for dynamically configuring IP and providing IP connectivity for a terminal equipment attached to a wireless device are described. The wireless device obtains from a wireless network a dynamically assigned IP address, an IP gateway's IP address, a subnet mask, or none or any combination thereof. Wireless device determines a host IP address (which may be the dynamically assigned IP address), a router IP address (which may be the gateway IP address or a spoofed IP address), a server IP address (which may be the router IP address), and a subnet mask (which may be obtained from the wireless network or spoofed by the wireless device). Wireless device, acting as a DHCP server, provides IP configuration for the terminal equipment, acting as a DHCP client. Wireless device thereafter forwards IP packets exchanged between the terminal equipment and wireless network and processes DHCP packets from the terminal equipment.