I purchased a tone to pulse converter to connect my Western Electric 302 rotary phone to my OBI110. In particular, I bought the Pulse to Tone (DTMF) converter [P2Tv2] from
alldav.com.
Initially this setup did not work, I could not get the OBI110 to understand the DTMF signals emitted by the adapter. However after changing a setting in the OBI110 device configuration, things now work. Specifically, the setting I changed is under Physical Interfaces -> Phone Port -> DTMFRxMode. I changed this setting from Hardware (the default) to Software which made things work.
I thought I'd share this to save other people some frustration.