Verizon tried to pull the same crap with me. I was with them as a DSL customer for almost 7 years before I switched to Comcast last year. When we moved to our new house I kept having connection problems (restarting) with the modem I had gotten when first becoming a customer. After several failed attempts trying to get it to stay online for the majority of the time they finally just told me I needed a new modem, which of course I had to pay out of my own pocket (a big screw you to a long time customer IMO). Well, $40 and about a week later I had it...and still had the exact same problems. 2-3 months later I switched to Comcast and have not had any real problems since.
F U Verizon!