Just did another ping test direct from the modem admin screen (this time with filter and phone also connected to the same jackpoint) and the result was 24% packet loss (24 packets from a total of 100) when pinging flip.co.nz. The lights stayed green the whole time.
If the DSL and PPP lights are both staying lit during the problem time, it's more likely to be a problem external to your home.
When doing those tests, make sure that you just have the one computer connected, by ethernet (not WiFi), to make sure there isn't something else hogging all the bandwidth while you are testing.
If you still get the same results, go back to the ISP's helpdesk, and advise them of that packet loss, and how you did the test.
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