DSL modem light blinking RED, you say the problem is with the line NOT THE MODEM but which line...the one outside that AT&T connects to house tele line OR do you mean the tele line inside the house? Please clarify, thanks.
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Put tinfoil over your splice connectors and filters as they leak signals that totally confuse your modem. Never leave any bare wires, I tinfoil the entire modem to prevent the neighbors from hacking me. I don't use wireless, only CAT5 ethernet cable.
did you install all the filters on all of your phone jacks?
If so then power cycle the modem "unplug it from the ac for 2-3 minutes". Try again
If still no luck open a trouble ticket with att and tell them its not connecting on the DSL side..
Does the DSL light come on at all when the modem is powered up?? If not, then it looks like the modem is bad.
When the modem is first powered on, all of the lights should come on and then go off after a few seconds. The power light should then begin to blink while the modem does a self test. Once that is done, the DSL light should come on and begin to flash red. If it senses a DSL connection, it will change to flash green until it has established a DSL connection. If it does not detect a DSL connection, it will continue to flash red. If the light does not flash at all or if the power light continues to flash after a minute or so, then the modem is most likely bad.
Issue that you have mentioned its very common among 2Wire modems. Most of the cases we have diagnosed Modem usually OK but the AC Adapter, AC adapter somehow comes from 3rd party with low quality production. Due to its circuit design internal heat dries up the DC output capacitors. So DC output comes up with ripple and it cause modem to not work properly. You may change the AC adapter or you can change its Capacitors. Same rate AC adapters will work fine. Just make sure polarization is right. If Issue continues you may post for further diagnosis
The DSL light flashing on the modem is natural for it means the device is synchronizing. But if the DSL light continues to flash, you have to wait a while before connecting, it shouldn't take more than a minute. If it does, you may need to contact your service provider because that is uncommon whether there is active Internet connection or none.