Sounds like the telephone has a bad hookswitch (known problem on the 18-D Euro II models)
Lift the receiver and if it doesn't connect to dial tone, grasp the hangup button and pull upwards. It it connects, you have a bad phone.
I've been able to fix them in the field by sticking a small piece of "Moleskin" on the end of the hookswitch inside of the telephone, where it presses the button on the circuit board. (Moleskin is adhesive backed felt that you normally put on the bottom of your feet when you get blisters from hiking. The adhesive doesn't fall off, and the felt is just thick enough to work. You only need a piece about the size of a pencil eraser)
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