Index: channels/chan_sip.c
===================================================================
--- channels/chan_sip.c	(revision 89304)
+++ channels/chan_sip.c	(working copy)
@@ -7083,7 +7083,7 @@
 		break;
 	case AST_EXTENSION_ONHOLD:
 		statestring = "confirmed";
-		local_state = NOTIFY_INUSE;
+		local_state = NOTIFY_CLOSED;
 		pidfstate = "busy";
 		pidfnote = "On Hold";
 		break;