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That means that the quality of the phone line is so low that the fax transmission is failing due to lost data. When that happens, and you don't have access to a better phone line, the best thing to do is to lower the data transmission speed. Other names for it include transfer speed, transfer rate, xfer speed, xfer rate, TX speed, RX speed, or baud rate. If you are trying to receive a fax, ask the sender to resend at a slower speed. If your phone service is internet-based (usually referred to as Voice Over Internet Protocol or VOIP), try closing as many as you can of the programs that are running on your computer.

If all else fails, you could try asking the sender to join the 21st century and pick up a scanner for 40 bucks. There are also online services that will receive faxes for you and send them to you as e-mail attachments, but I don't know of any such services that are free.

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Q: What does poor line condition on a fax mean?
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