I tried watching this, I usually like stuff like this, but that guy doing the voiceover was doing my head in.
Like some kind of camp third-rate Louis Theroux...
wrong, wrong, wrong.

any idea which 'british city's railroad station' this was/is in ? (assuming it was ever installed)

When i had my BT line installed in London four years ago, (I needed it for my Virgin Broadband connection) it took three engineers three seperate visits. The first looked around a lot and scratched his chin...
The second made holes in things and generally made a mess. At one point he found an 'unused cable' crossing the hallway and decided it needed cutting through as it 'wasn't being used', I stopped him with the cable between his shears. Later I checked what the cable was: it was my burglar alarm.
The third came and tidied up the mess and loose ends left behind by number two.
The line worked well for a couple of years until we moved out, flat was let and AFAIK it fell into disuse, the tenants preferring to use cable.
The current tenants are currently enjoying a running battle much like yours with BT telling them there is no line at the property (oh yes there is!) and it will cost £149 to install a new line... As you might imagine, they're not getting very far...