I'm not a queuing theory expert at all, but there's a point X where you have a certain amount of traffic and trying to add Y-amount traffic gives you performance much worse than X+Y. You get either a dramatic decrease in performance or a condition where it's entirely unusable.
So it could be because of the demands (your users) being to great for your supply (the potential throughput of the connection). It should be possible to take some measurements with the router. Tom
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