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1) A wiring fault is always possible, so this can be true.

 

2) Seems like a last mile thing. If they have no evidence of a large scale fault, it's likely your modem/router, the wiring in your home, wiring to DSLAM etc.

 

3) Less loss / lower latency results in more packets being able to be sent in a timeframe, which TCP likes, thus goes faster.

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