Muting a call stops the caller from hearing you, however you can still hear them.
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Calls remain muted even if you switch between calls.
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The phone's mute control and indication, and those in an application such as Avaya one-X Portal controlling your calls, are separate. Use one or the other to mute calls. Using both will cause confusion.
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Calls remain muted even if you change how you are listening to the call. For example, switching between the handset and speaker.