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Your problem is in the phone system programming. I would need to know how old your main cabinet is in order to tell you how to fix it. On most Nortel systems you use "Feature Key" **266344 (Feature **CONFIG) . You will need to program from a M7310 phone because you need the 3 soft keys under the display which the M7208 does not have. The top 4 keys on the phone are used for programming (2 LEFT & 2 RIGHT) . I'm referring to the 2 vertical rows of keys (5 LEFT & 5 RIGHT). Upper left key is up a menu, upper right key is SELECT, lower left is BACK, and the lower right is NEXT. I believe you need to find the CAPABILITIES menu for your station/extension and use the next button to look for the handsfree setting use the key under the display to change it. The manuals are at http://wedophones.com/Manuals/Nortel/
The BCM 50 can be key coded for up to 12 extensions on the main cabinet. Expansions cabinets use one key code to cover whatever Media Bay Module is installed. If you have an expansion cabinet with extensions it is possible that the extensions on the main cabinet did not get key coded. I have had a system with an expansion cabinet and only key coded eight extensions in the main cabinet because it was cheaper. This can be checked in the system / key codes area of programming.
The quickest way to make them drop is to unplug the SYSTEM cabinet.
It may be on a battery backup, so make sure you find the gray cabinet and pull its plug.
The Nortel 7316 set is propriatary which requires the nortel system in qrder to work., The pulsing lights are the set reacting to the standard line voltage.In order for it to work in your house you'll have to install the nortel phone cabinetand then attach the set(s) to it.
DSL uses one wire pair since it runs off a POTS line (plain old telephone service).
The Nortel modems are very old - they were some of the first DSL systems that came out almost 15 years ago. They were designed to work with their own proprietary Nortel back-end (DSLAM) equipment. Since they use proprietary and now way outdated transmission protocols, they will not work with modern DSL connections since they do not support the standard DSL protocols. Unless there was somekind of firmware upgrade I wasn't aware of, its pretty much junk.
Nortel went bankrupt a couple of years ago. I used to work for them and some of the guys who designed their DSL modems worked a few cubicles away from me. I had a couple of them in the early days (we got free DSL as beta testers back in the mid-90's) - the modems are useless now, but I found the power supply worked well with my cordless drill charger.
Here's the cheat sheet you were looking for. Here at IdacomUSA we provide User Guides and System Manuals for every system and phone that we repair. We also repair the Nortel T7316E for $75, which will transform your old phone into one that looks and works like it was purchased yesterday.
So what, exactly, is your question? Physically, you order a second line in a "hunt" group, and plug or wire it into the system cabinet. By default, a Nortel system has 2 lines already programmed to the sets, but you will probably need to activate the second line appearance in programming.
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