Livebox help please

Hi,

I'm using an Orange livebox, and my net drops out everytime the phone is picked up and put down. This is annyoing, as when I'm on my PS3 or laptop, my net goes. A while ago, my dog chewed through the end of a Sky wire that goes into the phone bit that the net goes into. Could this be causing the net drop outs? Any ideas on how to fix it???

Thanks :-)