Do router/modems go bad?

I've been having terrible problems with my Verizon DSL service lately. The speeds go up and down from one minute to the next and sometimes I lose the connection completely. I've called them several times and they even sent a tech to the house. He put a filter on the box outside where the line comes into the house and made it so the modem is the only thing on this one branch of the line. It worked for about a half hour (just long enough for him to get away) then the problem started again. It seems worse in the afternoon and evening, which leads me to believe it's a bandwidth probem, but Verizon says no. They said the problem is on MY end. I can't figure out how. I have three computers hooked up via LAN and they all share the Westell 327W router/modem. They all experience the same problem at the same time. I've tried disabling all of my firewalls, anti-virus and anti-spyware programs but that doesn't seem to help. If I go into the Westell Wirespeed Data Gateway it usually says DSL Connect Rate (Down/Up) 3360 Kbits/Sec by 864 Kbit/Sec. This is why Verizon says it's on my end. However a few minutes ago it showed nothing. Is it possible the modem has gone up? I didn't think that happened, but I don't know where else to turn.

Oh yeah, the computers are all connected to the router by wire. They are NOT hooked up with wireless and I've disabled wireless in the router setup.
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  1. Sounds like the same problem that I have. I also have Verizon DSL but only 2 computers hard wired to the router. The last month I have been getting terrible lag and high pings while playing Battlefield 2. Verizon says the problem is on my end. Usually its in the evening. I assumed that it was the peak time when everyone is on and thats what caused my lag. Who knows? You asked if routers and modems can go bad. I'm sure they can. They really get hot and you know what heat can to to damage electronics. Verizon even told me that my modem could be bad and that they do wear out over time. It seems to be doing ok for now. I still have to put up with the lag on some servers. I may consider Roadrunner in the future. My neighbor swears by it. I know I really didn't help you much but I wanted you to know that " I feel your pain".
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