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I have the same modem but with another supplier. I have had the same experience as you and it is probably not your equipement. The activity light as you describe it is normal, it flashes when in use. The issue is most likely with the cell tower and the wireless connection. There are two things you can do without much effort. One is to hold the power button for 3 seconds and get it to reset. Then touch it again to get it to come back on. Sometimes that will get you on a different port on the cell or refresh the connection. The other thing you can do is try to move the router around to different spots in the room, preferably up higher or in direct line with a window.
Another thing is to get a range extender or different modem but Verizon will have to help on that, they may have a solution for you, but it will cost you. Call them and report it as intermitten connectivity. Try and get to an advanced tech support person who can actually reset the connection and look at the information on their system for that specific cell. Don't let them tell you it is your equipement. Ask for a level II or level III tech. Have them check their whiteboard and see if there are issues in that area with the internet. In my area they all went to 4g and my modem is on 3g so they used the available ports on the cell for the newer 4g circuits and 3g got slower. Although the service is usually rated a 3meg it hardly never runs at that speed and most of the techs will be happy to see you get 75% of the service, You can run a speed test using speedtest.com and see the speed. Unfortunately that is the nature of wireless connections in the US. Some improvements are starting to come up with the newer 4g and lte and some day we may get as fast as other parts of the world. Verizon will consider it a valid connection if it is above 100kbp or just twice as fast as dial up. My connection goes down to 60-70kps at times or near dialup speeds.
I hope this was useful and please comment if this was helpful to you.
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