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Dsk connection is not working even though I use username and password for the connection. However, doing same setup in ubuntu 14.04 from bootable pendrive runs fine and have a connection. Is thi the issue in Ubuntu 16.04?

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yes. the problem in 16.04 only. some pon code allows us to connect but still by that way, ubuntu app store not finding the connection. It is serious problem for DSL connection users

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I had the same issue (DSL working in 14.04 and not working in 16.04). The solution was to set ppp MTU to 1492. This can be done by editing the "DSL Connection 1" file in /etc/NetworkManager/system-connections and adding mtu=1492 after the [ppp] line like this:

[ppp]
lcp-echo-failure=5
lcp-echo-interval=30
mtu=1492

Another way to set it is through the command: 

ifconfig ppp0 mtu 1492
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