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Most likely the MoCA connection. Try running straight Ethernet for a while, even if you need to tape it to the baseboards temporarily, and see what happens!
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I am also having frequent disconnections, it is not only the WiFi but the actually internet. I have a NAS hardwired to the router so I am able to see the log, this also messes with recordings on the PVR. The internet light is always red on my router, but doesn't necessarily mean the internet is off. This issue is very frustrating, Telus technicians have visited on 3 occasions to resolve the issue but it persists. The problem still continues!
I am having numerous disconnects, the internet light is almost all red. Telus has come many times and they are unable to solve the problem. The technician said that the red lights means that there are IP conflicts. I may be forced to part ways with Telus if they are unable to solve this issue. It affects the PVR as well and all the shows recorded are botched.
I've had a red internet light on my T3200 and everything worked fine for days. A reboot of the modem later and the red light went away. Not sure what would cause it to stay red in your case though. IP conflict seems rather unlikely as a reboot would force it to grab a new one in the rare chance there was a conflict.
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I agree with you that a red light is unlikely to be due to an IP conflict, this was the explanation given by the Telus technician. I have had the light red for almost one week and everything worked fine, no disconnections. I am however having to reboot the modem almost twice per day as the internet goes off as well as connections to the Optic TV boxes. The Optic TV PVR is hard wired to the modem and this looses connection as well, technicians have checked the wires multiple times. My only solution may be to use my own router in bridge mode, however most of what I have read on the forum seem to indicate that this isn't a smooth and stable process.