This reminds me of various Windows applications back in the day (Windows 3.1 and 95) that claimed to fine tune your connection and one of the tricks they used was changing the MTU setting, as far as I can recall. Could anyone share how that worked?
But your PC is still sending more packets.. the modem is struggling to fragment them all and send them upstream.. its memory buffer is filling up.. your computer is retrying packets that it never got a response on..
By lowering your computer MTU to 1492 to start with, you avoid the extra work by the modem, which can have considerable speed increase.