Communications Fail

This sign was posted last week in my building in an elevator and a few other places. It's one of the more egregious uses of jargon in public communications that I've seen lately. Does "loss of dial tone" mean:

1. The phones won't work.
2. There won't be a dial tone, but the phones will still work -- dial anyway.
   

Those are different things.

Project 100, #66.