It is not: c'e` l'ho but: ce l'ho here /ce/ is only a particle that emphasizes the meaning and allows /telefono/ to be put at the start of the sentence. Another possibility: No, perche` non ho il telefono. Another sentence is: -- qui non c'e` nessuno. mening: -- qui non ci e` nessuno; where /ci/ is again an emphasizing particle referring to the place (here, in this place). The particles {ci,ce,vi} has several different meanings, and many examples should be learned to master them.