I've reproduced this bug.  I reported it separately (bug #156164)
because for some reason I couldn't find your report after searching.

I had almost identical symptoms when connecting to a flat-rate ISP (also
with an 0808 number).  The only difference is I couldn't get the output
in your attachment - my system just locks up without warning, with the
keyboard lights flashing, and doesn't log anything about it.  I'm
working around it by using an old install of Mandriva 2006, which is not
affected.  I'll try your workaround in Ubuntu and report how it goes for
me.

Which version(s) of Ubuntu are you using?

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kernel panic after making dialup connection to internet
https://bugs.launchpad.net/bugs/130353
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