For NetworkManager to manage your device, you'll need to remove the
entries referring to eth0 in /etc/network/interfaces:

iface dsl-provider inet ppp
pre-up /sbin/ifconfig eth0 up # line maintained by pppoeconf
provider dsl-provider

auto eth0
iface eth0 inet manual

>From the initial opening of this bug report.

Further issues from the syslog excerpt:

Aug  4 18:57:05 melvin-desktop ntpdate[1861]: step time server 91.189.94.4 
offset 0.548440 sec
Aug  4 19:00:14 melvin-desktop pppd[1790]: No response to 3 echo-requests

Indicate an issue with BSNL directly. NetworkManager has nothing to do
with it. You should contact your ISP to investigate this matter,
especially if it also happens with Windows.

Marking as Invalid, since this does not appear to be a bug.

** Changed in: network-manager (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/811532

Title:
  DSL Dialer: Network applet shows 'device not managed'

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