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Why do I get lag spikes?

A couple weeks ago I upgraded to gigabit internet. It is FTTH and I got a modem with it. I hate it with a passion, the interface is clunky, the options are hidden or just non-existent (for example I can't change the default DNS server) and the Wi-Fi is so weak It doesn't reach the next room (100% transmission power) I mention this because I suspect it might be the source of my problems.

Since the upgrade my ping in games is like this: stays at a relatively constant 50 and then jumps to 90-130 for a second, then drops back, and it is repeated every 10-30 second or so. I measured it on ping-test.org on two different computers both wired and wireless, the result was in-line with what I saw in game. The connection is PPPoE, but I didn't have this issue when I had slower package and a router I bought. That router I just mentioned now serves as an access point, so I have Wi-Fi in the house, but it doesn't seem like it had to do anything with my problem.

The ISP refuses to do anything about it and I'm out of ideas as well.

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