This sounds great, I have been having the exact same issue in KZN Empangeni/Richards Bay (035) Area. Insane packet loss but my MS stays low, maybe Telkom can identify this issue in my area and fix it? Because its been like this for a few months. I pm'ed TelkomZA in December about it and he told me they fixed something and it should be better now, but it wasn't.
One thing worth mentioning is that the line is 10mb running a 4mb uncapped account from Afrihost (Line with Telkom, Data with Afri), could this packet loss be due to Afrihost forcing the line to 4mb? The line has been a higher speed than the uncapped account ever since we had it, but the packet loss issue is new, so unless Afrihost changed the way they limit the lines from going over 4mb speed, I can't see why this would be the cause.
Also worth mentioning is that this packet loss which is more prominent whenever I am using Teamspeak, also affects my Battle.net connection and I can't even finish a rift in Diablo, however if I join an American hosted Teamspeak server there is no packet loss at all. It seems to happen only on Local and EU servers.
Any assistance will be greatly appreciated as this is driving me mad.
Thanks