I had the blinking red issue. My device was previously working and then it suddenly stopped working and was always blinking red. I took these steps to resolve the issue.
1. Remove all wires from your telo box and leave off for 2-3 minutes.
2. Plug the power supply to your telo (should be the 2nd hole from the left) and connect to electric socket. It will be a solid red in the beginning for over a minute and then it will turn blinking red. Leave it in blinking red state for several more minutes.
3. Then connect your Ethernet cable to your telo (3rd or 4th hole from left should work) and to your internet router. Leave like this for several minutes, but the blinking red should eventually turn blue. Blue signifies that it works.
4. Connect your phone wire to the telo (last hole from left) and test your phone to hear a dial tone.
If #3 doesn't turn blue, then take your device into another location where there is internet and try to see if you can get the telo to turn blue from there. If you do see blue in the new location, then I would suggest resetting the router from the 1st location. If it doesn't work in the 2nd location either, I would call Ooma to troubleshoot further. Their support staff was the one that guided me to my successful reconnection.