The failed echo-requests that are triggering the redial are LCP Echo Requests, which is the equivalent of a ping but at the PPP layer. LCP Echo Requests are the correct way to monitor for PPPoE failure, especially as the IP address of the gateway at the Zen end of an FTTC connection is dynamic.
pppd sends a LCP Echo Request every lcp-echo-interval. If lcp-echo-failure in a row of these requests fail, the connection is assumed to have died, the PPP layer is torn down and the connection is re-established.
The defaults listed in your dump make little sense for FTTC PPPoE - there's no reason to wait two minutes before giving up with the PPP connection and starting over. The defaults are for dial-up PPP, where re-establishing the connection takes tens of seconds and likely has a financial cost attached. With FTTC PPPoE, the connection can be re-established in less than a second if the VDSL2 connection has stayed synchronised, and there's no cost attached, so it is in your interests to detect and act on any PPP failure quickly rather than waiting and hoping things will start working.
I'd make lcp-echo-interval 4 and lcp-echo-failure 4 in /etc/ppp/options , which means an LCP Echo Request is sent every 4 seconds and a failure is detected after 4 failed attempts (i.e. 16 seconds). An LCP Echo Request once every 4 seconds imposes minimal overhead, but allows for rapid detection of connection failure. One or two consecutive failures will happen from time to time with such a short interval, but 4 in a row almost guarantees the connection has failed.
You can tweak the detection interval even lower than 16 seconds if you like, but I wouldn't want to send an LCP Echo Request more often than every 4 seconds. Ultimately, it's a trade-off between speed of detection and detecting false failures.
You should configure your equipment not to close sockets or drop firewall states on a PPPoE failure, as the static IP on Zen means any traffic should resume once the PPPoE connection is re-established. My lack of familiarity with Linux precludes me from knowing where these settings are if they are not the defaults: I use FreeBSD with mpd5 rather than Linux with pppd. If you find sockets and/or firewall states are being torn down on PPP failure, I'd take a close look at the /etc/ppp/ip-up and /etc/ppp/ip-down scripts (especially the ip-down one).
So far as why these PPP drop-outs are occurring, you'd need to address that question to Zen support, who can take a look at the logs for your connection.
Everything you say makes sense but I think the most pertinent point is the last paragraph.



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