OK, so I labbed it up. For anyone interested just connect two routers in GNS3 via frame switch and run PPPoFR between them.
If I run default settings, CDP enabled on physical interface then the hub router does get the prefixes announced by the spoke. If I enable CDP with cdp enable on virtual-template of hub nothing changes. If I enable CDP on spokes virtual-template then ODR starts working.
*Mar 1 00:11:41.779: CDP-IP: Reading default route 120.1.1.1 via Virtual-Access1
*Mar 1 00:11:41.779: CDP-IP: Updating default route 120.1.1.1 in routing table
So the conclusion is to enable CDP manually when running PPPoFR.
Thanks for pointing me in the right direction dcancerian.