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If a one of the IO2 boxes that isn't working is disconnected and the Ethernet connected to a laptop does the laptop with its WiFi turned off have internet access?
What is the make and model of the power adapters and what is the make and model of the Telstra modem?
Is it the light on the right, the one that has icon that looks like a house, that is off? If that light is off the power adapters have lost there pairing and need to be repaired.
The light indicates the speed and quality of the data link between the two power plug adapters and depends on the distance and quality of the house wiring. Foxtel is wrong in saying it indicates the signal strength of the internet if anything it indicates the signal strength between the two plugs.
Have there been any modifications to the house wiring or have extra electrical devices been plugged into any power points?