This just happened to me today. We had a point to point T1 circuit go down,
and all I could see on the one end was:

DCD=down  DSR=up  DTR=up  RTS=up  CTS=up

So, even though our CSU/DSU was powered up and connected to the routers
serial interface with a good cable, we showed DCD down because the telco
circuit was down.

Mike W. 

Priscilla Oppenheimer wrote:
> Here's the conclusion, since a few people have wondered about
> it. By the
> way, the question had to do with an external CSU/DSU.
> 
> According to Cisco documentation, a down/down serial interface
> means the
> router interface cannot determine that CD has been asserted. As
> mentioned
> earlier, a CSU/DSU acts more like a DSU than a CSU and presents
> a
> synchronous signal to the router. The CSU/DSU must assert Data
> Carrier
> Detect (DCD or CD), Data Set Ready (DSR), and Clear to Send
> (CTS). The
> router, which is playing the DTE role, must assert Data
> Terminal Ready
> (DTR) and Request to Send (RTS). For all these control leads to
> be
> asserted, and for the router to recognize that they are
> asserted, the
> router and CSU/DSU hardware must be operational, and the
> cabling must be
> properly constructed.
> 
> However, even if all hardware checks out, there are still cases
> when the
> interface may be down/down or flapping between up/up, up/down,
> and
> down/down. For example, some CSU/DSUs won't assert CD if the
> link to the
> carrier is having problems. In these cases, check the CSU/DSU 
> configuration. Make sure the right clocking, framing, and
> encoding are
> configured. If they are correctly configured, then call the
> service
> provider and work with the provider to isolate the problem.
> 
> Priscilla




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