Вот отладочная информация pppd:
Press CTRL-C to close the connection at any stage!
defining PDP context...
rAT
OK
ATH
OK
ATE1
OK
AT+CGDCONT=1,"IP","internet.mts.ru"
OK
waiting for connect...
ATDT*99***1#
CONNECT
Connected.
If the following ppp negotiations fail,
try restarting the phone.
Serial connection established.
using channel 12
Using interface ppp0
Connect: ppp0 <--> /dev/modem
sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x1e93f19b>]
rcvd [LCP ConfNak id=0x1 <asyncmap 0xa0000>]
sent [LCP ConfReq id=0x2 <asyncmap 0xa0000> <magic 0x1e93f19b>]
rcvd [LCP ConfAck id=0x2 <asyncmap 0xa0000> <magic 0x1e93f19b>]
rcvd [LCP ConfReq id=0x1 <asyncmap 0xa0000> <auth pap> <magic 0x7902> <pcomp> <accomp>]
sent [LCP ConfRej id=0x1 <pcomp> <accomp>]
rcvd [LCP ConfReq id=0x2 <asyncmap 0xa0000> <auth pap> <magic 0x7902>]
sent [LCP ConfAck id=0x2 <asyncmap 0xa0000> <auth pap> <magic 0x7902>]
sent [PAP AuthReq id=0x1 user="mts" password="mts"]
rcvd [LCP EchoReq id=0x0 magic=0x7902]
sent [LCP EchoRep id=0x0 magic=0x1e93f19b]
rcvd [PAP AuthAck id=0x1 "Login ok"]
Remote message: Login ok
sent [IPCP ConfReq id=0x1 <addr 0.0.0.0> <ms-dns1 0.0.0.0> <ms-dns3 0.0.0.0>]
sent [CCP ConfReq id=0x1 <deflate 15> <deflate(old#) 15>]
rcvd [IPCP TermAck id=0x1]
rcvd [LCP ProtRej id=0x3 80 fd 01 01 00 0c 1a 04 78 00 18 04 78 00]
rcvd [IPCP ConfReq id=0x1 <addr 0.0.0.1>]
sent [IPCP ConfAck id=0x1 <addr 0.0.0.1>]
sent [IPCP ConfReq id=0x1 <addr 0.0.0.0> <ms-dns1 0.0.0.0> <ms-dns3 0.0.0.0>]
rcvd [IPCP ConfNak id=0x1 <addr 192.168.17.17> <ms-dns1 217.74.244.2> <ms-dns3 195.239.160.2>]
sent [IPCP ConfReq id=0x2 <addr 192.168.17.17> <ms-dns1 217.74.244.2> <ms-dns3 195.239.160.2>]
rcvd [IPCP ConfAck id=0x2 <addr 192.168.17.17> <ms-dns1 217.74.244.2> <ms-dns3 195.239.160.2>]
default route ioctl(SIOCADDRT): Network is unreachable(101)
local IP address 192.168.17.17
remote IP address 0.0.0.1
primary DNS address 217.74.244.2
secondary DNS address 195.239.160.2
Script /etc/ppp/ip-up started (pid 3935)
Script /etc/ppp/ip-up finished (pid 3935), status = 0x0
rcvd [LCP EchoReq id=0x1 magic=0x7902]
sent [LCP EchoRep id=0x1 magic=0x1e93f19b]
Terminating on signal 2.
Script /etc/ppp/ip-down started (pid 3964)
sent [LCP TermReq id=0x3 "User request"]
Script /etc/ppp/ip-down finished (pid 3964), status = 0x0
rcvd [LCP TermAck id=0x3]
Connection terminated.
Connect time 0.4 minutes.
Sent 88 bytes, received 58 bytes.
Sending break to the modem
PDP context detached
Serial link disconnected.
DNS(два!) прописал куда надо.
А счастья все равно нет

Настораживает строка: remote IP address 0.0.0.1
Разве такой адрес должен быть? Как можно исправить?