Internal exception: IO.NETTY.HANDLER.TIMEOUT.READTIMEOUTEXCEPTION

Whenever I join a server it loads a small amount of terrain. It shows in the server console that I have joined the game, yet I am unable to interact with anything. i.e open chests, talk in chat, break blocks etc. After a few minutes I get kicked from the server with the error: Internal Exception: IO.NETTY.HANDLER.TIMEOUT.READTIMEOUTEXCEPTION

I first noticed this issue at the release of 1.7 and It is very frustrating. I have reset my modem, used a port forward service like hamachi, re downloaded java and minecraft and I still have issues.