Q: Why is my aTV 3 dropping wifi?

I started to have the same problem when I changed my modem. The IP address on the ATV disappeared frequently and in random intervals, and then reappeared after one or two seconds. I tried whatever I could find in the internet. In one post the band width  was suggested to be set on 40 MHz instead of 20. My new modem did not have "40 MHz", but "20/40 MHz auto". Setting the band width to it was not any good. I changed my modem to the previous one. The apple TV wifi problem was solved. When I checked the settings, I found that the old modem had been set to 40 MHz.

So I suggest you guys to check this quick tip, maybe it helps.

if ones router is crap then one can always buy ones own wifi router and connect that to the ips router