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Well, many hours wasted on this, made only small progress
The above step 4 part 3 doesn't work 'SetENV provider' gives an error I think a parameter is missing, can't seem to find it.
I did how ever manage to get the SNAP locked firmware undone
I grabbed the 04.86 recovery FW from here http://fritzbox.com.au/firmware/annex_b/FRITZ.Box_Fon_WLAN_7390.AnnexB.en-de-es-it-fr.04.86-18550.recover-image.exe
This asks whether to over write the ISP settings, warnings bla bla, press OK and this FW gets put on
It does however not boot the FB7390 !!, as it's an Annex B recovery I presume
How ever you can now recover with FW 05:51 then set Annex A, then upgrade to 06:20, going directly to 06.20 may allow you to select Annex A
I can no longer get a dial tone at all any more on FON1/2 DECT still works, calls come in and FON1/2 rings (but sounds terribly sick)
SNAP must reset the VOIP password every 48 hours or so as I have no phone at all now.
I've reset the broken modem back up with original SNAP settings and ti should do an update via TR069 later
Thinking twice now about VOIP and it's swiss cheese of security and now SNAP taking over my router and being at it's mercy.