"PHONE" is not related to the lock-out, it's most likely a wiring problem. This indicates that the radio is muted by a connected phone system.
If the radio was locked-out, it would be showing one of these messages: "CODE", "CODE IN", "INVALID EQ", "CHECK TH12HW", "WAIT", "SECURE" or "LOCKED".
A.R.S., November 2012