The "Line in Use" message means that the telephone can't detect a dial tone. This could indicate a problem with the phone, the wiring in your home (at one or more jacks) or the wiring outside of you home. I like to do the diagnostics with a basic wired telephone. This means that I don't have to bring a power cord with the phone as I test different jacks/access points.
First, if the message was on a cordless handset, make sure that the base is getting AC power. Next try a new RJ-11 cable between the phone (or base) and the wall outlet. If there is still no dial tone, try your test phone. If it gets a dial tone, then you know that the problem is specific to your original phone.
If you do not have a dial tone, try the test phone at another jack for that phone line (if available). If other jacks give a dial tone, then the jack or the wiring to the jack probably has a problem. Remove the wall plate and look for any loose or damaged wires. There are two types of connections. If you see screw terminals, then strip the insulation from the wire and then secure it under the appropriate screw. If you have a punch-down keystone jack, you will need a punch-down tool that is available at most hardware stores in the wiring section. Do not strip the insulation. Push the wire down into the contacts in the keystone. See http://www.lanshack.com/wire_phone_jack.aspx for the usual wiring patterns.
If there is no dial tone or no other jack, find the service box where your phone line comes in. Open the box and determine if there is an RJ-11 jack in the box. If there is, try your test phone. If you have a dial tone, then the problem is with the indoor wiring. If there is no dial tone or you can't test the line, contact your telephone provider. They should test your phone for you. Most providers will repair outside problems for free. (There are a few that are trying to get customers to upgrade and will try to avoid fixing wiring issues.) If your wiring problem is in your walls, you may want to ask your provider to find and fix the issue. You will have to pay for the service. If you have a DSL filter inside your home, you may need to replace that filter.
I hope this helps.
Cindy Wells
(I have had dial tone issues with phones on numerous occasions. Sometimes the fix is simple. When a handset cord had been substituted for an RJ-11 cable, the fix took seconds. When the phone service was upgraded and a cable fell behind the siding, the fix took a minute. Most often, the fix required a call for service. Several outages were due to broken wires. Sometimes a rodent chewed on the wires and sometimes a contractor dug into the underground lines. At one point my home's DSL filter was in the service box so that had to be replaced by the provider after a lightning strike. Since we went to a fiber optic service, we needed the fiber optic modem replaced once. In that case, we had intermittent phone, internet and television service interruptions until the hardware was replaced.)
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