EDIT: tech info added
The above seems to be a h/w reset caused by the modem (circuit or firmware) or a momentary power loss. The modem did not stuck (brown out) but restarted and recognized by the system. Also the system rearranges /dev/ttyUSBx starting from 0 because wvdial exited normally. In another case the connecting program stuck holding the /dev/ttyUSB0 resulting in a rearrangement to /dev/ttyUSB1 & 2
If the above caused by a power problem could be fixed with the patched cable.
In the above case the modem is in an ERROR state with its firmware knowing or not this Error condition (the 'madly blinking' could be random or a status). We are sure that power removal is a solution.
The best is to open/close at least 3 leads (V+ and data). As it is simpler to open/close only the V+ (red cable) you have to try it. If the modem is well designed will reset fully even if the line driver has data signals.
Finally Init2 = AT&FE0V1X1&D2&C1S0=0 it is very good because of AT&F which restores factory defaults, useful when using the modem with windows where we don't know the exact settings (via control panel you can enable and check the modem log file to see some of them).
Using minicom you can try AT&F then ATZ and AT&V to see factory default settings.
(minicom -s starts minicom without initializing showing the main menu)
Regards,
George
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