They (probably) conducted the test improperly on the phone. Any electrical testing to phone equipment connected to outside plant wiring needs to include carbon blocks or gas tubes to ground as in a real installation. 'not saying your typical phone would survive, but it might not fail in such a spectacular manner. The 24-26 AWG wire outside the home would burn open under the stress when the carbon blocks clamp (at 200 - 600 VAC). As with the power company, the NEC is ignored by phone companies (don't expect to find fuses between the clamping devices and the outside wiring)
