I got a network extender in July 2011 and it worked beautifully for about a year and a half. I set it up myself and had not problems. Sometime in December 2012 there was a "national outage" and my extender has never worked right since. It would allow me to hear my callers but callers could not hear me. After about 8 hours with CS over a few days, a fruitless service call with my ISP, Time Warner Cable and finally a desperate call to executive offices, Verizon sent me a new extender. I set it up the same way as the first and after about 3 hours all blue lights came one. The identical problem with my phone occurred. My next move was to go to the local store and beg for help. They were very pleasant but their solution, if you can call it that, was to send me a THIRD extender which I took to the store for "checking" and was told it was fine. When I set it up, it did exactly what yours is doing . . . I have blue, flashing red, purple, blue LED. I tried both the build in antenna and the external antenna for GPS. I poured over the manual (sorry, Elector, but don't you think we looked at the manual?????) and it said if this condition occurs, the unit is defective. So, back to the store to return my third unit. If anyone has any helpful suggestions, I would most appreciate it.