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Another possibility is an MTU on the line. An MTU, is a Maintenance Test Unit. In days long gone, it was used to remotely check for problems on your phoneline. It seems these lovely units that consist of an Op-Amp and a bunch or resisters, capacitors, etc ... cause major problems with DSL. These are generally located in your phone closet or basement (where the phoneline comes from the street into your house/apartment).
You can have your phone company do a line check and they should be able to determine if you have one on your line and approximately where it is located.
Some other possibilities suggested by our members:
1. If a customer's DSL goes out when they answer an incoming telephone call, it's not always in the house wiring. Have your local phone company check the CO for what we call a half tap. If they find one that should solve your problem.
2. If the water company's automatic reading unit in your basement is connected to your telephone line, it may be causing issues. Unplug the phone line attached to it and you can see if this is the case. They may contact you advising they can't read your water meter. You can advise them it is causing issues with your DSL and they will hopefully address the problem.
Thank you! Was having this problem and it really had me stumped. I wonder how many other Minneapolis residents are having DSL problems due to the Minneapolis water meters. I put a DSL filter on the line going into the meter and problem solved!
I would like to add, that in the Netherlands there are 2 ways of ADSL. 1. over Analog phoneline called POTS, 2. over a digital Telephone called ISDN. I received by mistake a ISDN splitter with my modem and put it on a POTS line. It worked fine until a call was received, ADSL modem would diconnect and reconnect when line was availeble. Since the line only housed a fax it took me a week to find the issue. Hope this helps for others.
I had this problem on my line and it was indeed an MTU. I wrote an article with pictures on how to identify the MTU and remove it. Hope it helps others: http://rdist.root.org/2009/02/04/fixing-dsl-lost-sync-problem/
Also read About DSL for lots more information