My at&t Motorola 3360 has every light blinking but is still working. The Power and DSL are continuously blinking red and the ethernet, internet and activity are all blinking green.
Here's the thing...if the modem is unplugged, and you press the "Reset" button, or any button, nothing will happen because the modem is UNPLUGGED.
When you plug it in again, there is usually a few minutes or so during which time the lights will blink. Eventually, when the DSL connection is established, the blinking should decrease. But, there will always be some blinking going on to indicate that data is being transmitted.
If the "Ethernet" light is blinking, then a computer that is plugged into the router is transmitting/receiving data. If the "Wireless" light is blinking, then a computer that using a wireless connection to the router is transmitting/receiving data.
If a red light blinks, then that usually means the DSL connection has been broken. When that happens, for whatever reason, the modem will automatically begin its initialization routine and will continue to do so until connection has been established. During that time, LEAVE IT ALONE.
If you uplug the device, or if you press ANY button while the device is attempting to correct itself, you can cause permanent damage.
So, you are correct. It's not a problem. I'm sure you've heard the phrase "If it's not broken, then don't fix it." There's a lot of truth to that.
I hope this helps.
Arris 3360 AT&T...
on Jul 04, 2014