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M-I-L's Router connected to the ISP Pipe

Good Morning,

Background: My MIL is in an ex-Soviet country, where I visited her. She gets FTTH via Huawei 8240 CPE.  It is connected via optic fibre, not POTS.

I was asked to install a WAP in her point, which I did. Since the WAP was on client-server dhcp mode, I used "IP scanner" to find the DHCP assigned IP address of the WAP on the LAN side. The scanning never finished, and after 10 minutes I found out that there were 1000 hosts on the same subnet! which was a shock. It looks like that the ISP has "PATed" into various homes. 

 

So her home hosts all get "public IP addresses" at any time. I was only looking for a 192.168.xx.xx address, but they all are public IPs. 

 

My questions: 

 

1: Why their ISP has not used NAT on the LAN side? Why all customers on same subnet look like on a DMZ?

2:  How do I protect her home PC now, since I know this might be a security flaw?

for eg: SKY UK forces you to use their own modem. Way around is easy by doing a double NAT (not the best but ok)Good router >SKY UK Router> DSL

 

3: IS there a way I can protect MIL's home network but still using the ISP modem/router?

 

thank you

 

Himanshu

 

 

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Anyone, any comments please?

Anyone, any comments please?