How unstable would you expect a new broadband conn...

A friend has recently signed up for BTBroadband never having had internet access before.
Hub installed OK a week ago yet the broadband hub light is often seen to go orange and the connection drops. This happens every few hours day and night whether in use or not. One time the light was stuck on orange for a few hours and the restart button had to be pressed.
Should this settle or is there a problem ? Does using the web/downloading etc help or does the line adjust whether used or not ? Would watching something on iplayer or you tube help in that it sends a lot of data ? 
Speeds are reasonable at around 12mbs when tested.
Although they live only a few hundred yards from me (same exchange etc) speedtest.net always automatically picks servers that are at the other ends of the country such as Aberdeen or Hull etc.
 When I run speedtest.net I always get offered the same server... Manchester.   
thanks for any advice

davesmeg wrote:
First 7 days after installation I had a solid 4mb even with switching the hub off overnight. Since then I tend to lose internet about 4 times a day even though the lights are blue and lose wireless signal about 10 times a day, still with the blue lights on.
have you tried downloading inssider2 and then run it. This will show the broadcasting networks round about you and their channels including your own. Then enter your router and change your wireless channel to a free or less congested channel.  may help your wireless disconnections
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