Yep, in the olden days that wire used to carry the current that rang old style bell phones. But now days all modern phones work on the 2 wire system rendering this third wire obsolete. I think I read about that the bell wire was introduced by BT for compatibility a long time ago with older phones.
If you are using an extension lead, they're fully wired, so there is still a change the bell wire is inducing interference, if you stick a very thin bit of black tape on the bell pin on the adsl splitter that your router plugs in to, it might help.
It won't. When it's at 14dB, if you reconnected it would drop to 6dB and you'd get a higher sync rate at the expense it would disconnect instead of the lower SNR margin.
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