new xb7 white modem: now landline no dial tone

installed the new white modem 

I had a BLUE cable that goes from the back of the computer to the modem that was in position 2 on the back of the black modem

on the new white modem, it doesn't fit into the top phone ports (outlined in white) so have it in port #2 (the 4 outlined in yellow) and there is a tiny green light blinking on it

but, now no dial tone

isn't that for the landline phone

I have a regular phone line (luckily had a fax hooked up on a nearby printer) that works if I plug it into the phone port 1

why would I now have to use a regular phone line with the new modem when i didn't with the older black modem?