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The model number for your cordless phone is on
a small sticker underneath the battery inside the
handset. Entering this number at www.manualslib.com will allow you to
get a free copy of the original owners' manual.
This is a standard phone so I'm assuming you're using this in a home or small office, connected direct to a regular phone line, and that you're using calling services from your phone service provider. 3-way calling works as you describe: you press flash to get dialtone again, call the other party, then press flash again to connect the two so all three of you can talk. The point is that this is 3-way calling, not a forwarding or transfer function. You can't transfer a call to another number this way. Since you initiated the 3-way call, the connection requires you to be there; when you hang up the connection between the other two parties is broken.
Your line may also have call-forwarding, which lets you program a number that calls to your line will reach if you're away (an alternative to using voicemail or an answering machine and needing to check messages). But this doesn't allow you to transfer a current call to another number, only incoming calls.
The only way you can transfer a call is when you have the switching equipment (an office phone system, for example) at your location, and have at least two outside phone lines available. Then the system would allow your phone to disconnect, and still maintain the connection between the other parties. But both of the phone lines would remain tied up until the other parties hung up, and if you only had two lines you'd be unable to receive or make any other calls.
Residential customers with a single phone line don't have any option to transfer calls.
LCD displays are made with an extremely thin film of metal along one edge to supply voltage and signal to the display to form the characters we see.
To contact this stretch, a ribbon of (normally silicone) rubber with delicate wires parallel to each other and this is only connected by pressure to the thin metallic deposits on the display. The pressure is normally applied by a strip of plastic that presses the two together and any change of position, weakening of the pressure on the rubber strip or incursion of moisture can upset this connection and cause the kind of display you are seeing; unintelligible.
This isn't an item worth repairing since it requires disassembly of the handset and experimentally repositioning of the strip until the contacts are all in place again.
The amazing fact is that so few ever fail, not that yours did fail.
I think your best course is to replace the phone since it is likely that the repair cost will equal or exceed the cost of a new one.
This is not a mobile phone but a cordless one. The signal arrives by wire till the base which retransmits it to the headsets. The thickness of the building outside walls does not intervene in the propagation of the signal: the source is inside the apartment. The phone should work. You may have some out of reach messages if the apartment is huge and the base and headsets are too far apart, but otherwise no problems.