Internet connection being Throttled by ISP

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Bombs

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Hello everyone, i am from Brazil and i have a serious problem with my ISP since august 2011, my connection is 10MB cable , the problem is:

The quality of the service has been getting worse and worse from month to month, since 3 weeks ago to now the service turned out to be impossible to use, i am a computer technician and have only basic knowledge over networks so i been observing my connection traffic and stuff, the thing is, between (exactly and everyday) 9 AM to 2 AM it is impossible to use the internet, not able to play online games like starcraft 2 or download torrents, heres a video that i recorded on starcraft 2 when i am around this time:

http://www.youtube.com/watch?v=qdB6ikvACms (playing Starcraft 2 above 60FPS thats not low fps that it might look like, its stuttering and lag spikes non stop)

But after exactly 2 AM until 9 AM the connection works pretty smooth, like it should, being able to play games with no problem and download torrents at full speed 1050 kbps.
Also, after 9 AM my packet loss increases to around 25% (both download and upload) until 2 AM when it drops back to 0% until 9 AM increasing again to 25% and so on, then i realized they have control of my bandwidth and maybe prioritize the big companys of my city in the hours i mentioned above.

Since august what they been telling me is that they do not have enough bandwidth to provide the city, without prior to repair it.

So i just wanted some hints from you experts on that area, cause i really don't really know if that is traffic shapping, connection throttling or packet injections, i am not sure and i dont have proofs on that.
I'm also lookin up to sue this company and if you guys support me and if not point me where i am unwise about what is really going on, i've been through a lot of stupidness from that company promising and never solving, turns out that in my point of view they don't give a damn about the clients, but about their money.

Thanks for reading and thanks in advance, peace out.
 
I think it's about what they say the issue is, the overall bandwidth isn't there to fully support all the users. You're getting a 10mbps section of the whole line they're running, however it's set up it seems like there isn't enough to support all the traffic, and what they should do is add more lines to give the adequate bandwidth. I doubt it's something you can sue over, but you may be able to complain enough to get them to void your contract so you can change providers. Otherwise your **** out of luck.
 
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