yep, it is quite possible that you could have been connected to a 8Mbps DSLAM, and more data than what your line can take in is being pushed into it.
The result is "dead routing" ( I learnt this from Cyrus the virus
). Technically happens in such a situation is this: when your line is flooded with more data than it could handle, most of it is lost.The modem then asks that data to be resent. Again most of it is lost.So this becomes cumulative and your line stalls. Data may continue to trickle but at an abysmally low rate almost single digit bits per second -- worse than a worst dial-up connection.
I faced a similar situation months ago when BSNL wrongly disconnected and then reconnected me to a different DSLAM. I had a long-drawn battle with the totally incompetent BSNL guys.
Finally they acknowledged the fact and reconnected me to the Original DSLAM no. 4, slot no 7 and port no 17,which was capped to 2 Mbps and eversince everything is working fine.
My downsream speed is now 2048 Kbps. Earlier it was around 6300 Kbps and from my line attenuation figure I had guestimated ( and Cyrus too) that my line is capable of a max speed of only 4 Mbps.
Can you please post your line statistics from your modem? The relevant figures will be the downstream/upstream speeds,attenuation, and noise margin (SNR) and post it under the BSNL thread in Chit-chat where you can perhaps get more expert opinion.