I currently have an OSPF routed network, I create tunnels using EoIP from each AP to a core router and running a pppoe server on each EoIP tunnel on the core router, this has worked fine for a long time. But EoIP not very efficient on bandwidth. It has about 250 terminated PPPoE sessions across 7 PPPoE servers on one router.
Can MPLS/VPLS solve this and be more efficient over EoIP tunnels? instead of having 7 PPPoE servers for each EoIP tunnel running can I have just one PPPoE server and use VPLS with MPLS to get efficient use of bandwidth?
I would suggest BGP based VPLS. And proper use of Import and Export route targets can allow creation of a Hub and Spoke system (redundant hub too). This reduces traffic waste and can improve performance even more.
You can replace EoIP with VPLS (you must first setup MPLS but is simple as you already have ospf routing) and maintain 7 PPPoE servers. I don’t understand why you want only one PPPoE server.
In our production environment we prefer to maintain separated PPPoE servers and we put each vpls in a single bridge interface so PPPoE is always up and not affected by possible vpls up/down.