In Edgy this is caused by incorrectly setting the dial-out command to
"ATDTW" or "ATDPW" instead of "ATDT" or "ATDP" in /etc/chatscripts/ppp0.
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[network-admin] Dial out does not work
https://launchpad.net/bugs/22119
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The quick and dirty way to fix things for Edgy: Go to file /usr/share
/system-tools-backends-2.0/scripts/Network/Ifaces.pm, line 3137
(subroutine get_interface_replace_table, section "debian-3.0") and
remove 'W' from between %external_line% and %phone_number%.
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[network-admin] Dial out does not