> connect /usr/sbin/chat ""ATDT$TELEPHONE CONNECT ""'

I don't use chat, and don't understand your pppd login script at all, but that line 
looks
like it has an unbalanced single quote.
If you balance it, say like: '""ATD.......""'  the shell likely won't
interpret your $TELEPHONE variable.
You might be better off looking at man pppd and man chat. The man pppd page
puts most of this stuff into text files. That might be easier.
I don't think you need to export any variables here, but, I could well be
wrong on that.

Joel


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