I have a Linksys IP phone SPA942 which has a problem. Every time i connect to a power cable all the lights in the phone glows and goes off except the mute which is always glowing red and never goes off!.

Even when i connect a internet cable to configure an extension the status of the phone never changes. Mute button is ON as it is. Even after changing the network settings from DHCP to static so that i can manually enter my IP address, there is no change what so ever. It is same as it is even the internet cable is connected or not.
When i check the phone status it says Tx:4P and Rx:0P.

I did factory reset several times no luck
Is this a hardware issue?
Please guide me so that i can make this 140$ to work!!