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It seems that with the latest firmware update for the Smartmodem gen 2 (Firmware Version 18.1.c.0347-950-RC) Telstra have introduced a bug. It now looks like if you change the local device IP address and the DHCP start/end address the modem locks up.
These settings were working for months prior to the update but now cause the modem to lock up and require a hard reset.
Local device IP address: 192.168.1.254
DHCP start address: 192.168.1.100
DHCP end address: 192.168.1.199
Looks like I can now only get it working within the modems default subnet range. This does work