emi_x25 keeps redialing

Hi,

I'm setting up Kannel so that it would send pager alerts via UCP 
through an attached modem. Here's the configuration:

group = smsc
smsc = emi_x25
smsc-id = TVT_PAGER
throughput = 1
phone = 007XXXXXXX
device = term/b
allowed-prefix = 500
preferred-prefix = 500
smsc-username = foo
smsc-password = bar
keepalive = 0

Before sending anything, just started the gateway, and it started 
dialing that number, then it keeps hanging up and re-dialling again 
immediately. With log level set to 0, it prints only the dialing status:

2006-02-20 13:58:28 [27163] [6] INFO: at_dial: dialing <00XXXXXXXXX> on
</dev/term/b> for <30> seconds
2006-02-20 13:58:48 [27163] [6] DEBUG: at_dial: CONNECT
2006-02-20 13:58:49 [27163] [6] DEBUG: at_dial: done with dialing
2006-02-20 13:59:33 [27163] [6] INFO: at_dial: dialing <00XXXXXXXXX> on
</dev/term/b> for <30> seconds
2006-02-20 13:59:52 [27163] [6] DEBUG: at_dial: CONNECT
2006-02-20 13:59:53 [27163] [6] DEBUG: at_dial: done with dialing

and so on infinitely.
what's missing in the config?

I'm using the snapshot from 20060216.

thanks,
stan