Disconnect the DSL modem from the phone line wall jack, and connect a phone to the wall jack. If you hear static noise, then either the phone line from the phone company's distribution system to the junction box on your home's exterior is bad(phone company's responsibility, call them to check it), the phone line from the exterior junction box to your wall jack is bad(your responsibility), or the phone line wall jack is bad.
If you do not hear any static noise, then either the modem is bad(call your DSL ISP to check it), the USB cable is bad(try a different known working cable), the USB port is bad(try a different port), or the USB hub is overloaded(disconnect all other USB devices).
Check the router's modem stats for SNR and ATTN figures on your phone line. High ATTN (Attenuation) and/or low SNR (Signal-to-Noise ratio) could result in dropouts. What are the figures, and what speed is your connection (1Mb, 2Mb etc.)
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