Is there such a thing called Frame IP?
Yes. It is a form of bridging technology. It allows Frame Relay connected hosts to access IP networks in an IP-like fashion. It is a bit of a hack since this means making Layer 2 act like Layer 3.
To quote AT&T's explanation of what it means by "IP Enabled Frame Relay":
[This] service is enabled by deploying advanced IP routing technology based on the Multiprotocol Label Switching (MPLS) standard which integrates the capabilities of Layer 3 routing and Layer 2 switching. The packet routing across the network will be based on the customer's IP address inside the payload of the frame packet or ATM cell. This means unlike traditional PVCs, the network egress point will not be based on examination of Frame or ATM addresses, network egress will be based on the examination of the customer's destination IP address buried in the packet payload. Because of this "IP routing" functionality, customers will receive direct "any-to-any" network connectivity without implementing SVCs or building full mesh PVC infrastructures.
Related Q&A from Loki Jorgenson
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