S3 WIFI connection issues - peculiar - range related

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AC Question

Been using for almost 2 years; got 4.3 update long time back. Everything was perfect until last weekend - July 12. Suddenly WIFI stopped working and was getting authentication error occured; did several things like 1. turning the power save off in the service mode 2. setting off auto switch 3. removing the battery 4. switching off and restarting both phone and modem, etc, that have been recommended here and in several other forums;
Then thought of trying WPS way of connecting - push button. Since I had to do the push button on the router, I was standing close to the router with my S3. Accidentally the WIFI picked up. Then tested this repeatedly and found that the S3 gets connected through WIFI when the phone is very close the router. Perplexed.

It is not the router problem for sure. Because all the other devices like, laptops, nexus 5, old E63, chromecast connect to the router from a good distance.
Any suggestion, direction will be very helpful. Thanks for your time.

regards
Gopal