It's very difficult to find bottlenecks, because there isn't a universal system of reporting packet loss to the end user. TCP will know it happened but not really where. Lots of switches and NICs drop packets and you might not be able to find any log. Are you in the USA? 1Mbs is insanely low. Broadband, FCC defined minimum quality, was increase to 25Mbs down / 3 up. If you're located inside a city there should be better options.
If the cable going into your modem is like the one for cable TV it's DOCSIS. If it looks like a phone line it's DSL. You would need a small dish on your house for point to point wireless. That's pretty much only in rural areas. When you are having high latency trying pinging your gateway and the next one to the...