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Traffic shaping

We have a 10MB connection and our ISP is seeing millions of dropped packets every day on their router. They suggested we do traffic shaping to manage the amount of traffic we attempt to send over the connection. So we have implemented the following command on the outside interface of our router:

traffic-shape rate 10240000 512000 512000 1000

However they are still seeing packets being dropped. Is this the correct way to utilize this command?

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