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I have the same problem, I believe I have a faulty modem but still waiting to catch tech's call. I only have had this problem since buying the "smart modem" with 4 ports. The modem before which seems to be discontinued was a 2 port but that works fine with the Telstra call Guardian phone. Also my paring light seems to be stuck on solid green. I don't think it was lit on the other one all the time only when paring a device ? (( I'm on the NBN no green light on top for phone ))
Can you confirm if you have tried returning the modem to factory defaults? If you haven't, this can be done by holding the reset button in for 15 seconds or via the modem interface. This should force the modem to request the details for the phone service. Also, is your handset connected into the #1 green port on the modem?
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The pair light will be green if you pair with a DECT 2.0 handset it will also stay green if you successfully use WPS to connect a WiFi device to the gateway.