Copper line fault? What does that mean?!

My broadband is not working too well....my wifi even worse....essentially it drops every so often despite the router being new. I used the online BT chat help and they did a test where I had to plug the phone line into the test socket inside the main socket.
The test showed that we have a copper line fault.  He could not be sure if this was inside or outside the house, and if inside would cost a considerable amount should we opt to get a BT engineer round.
we are BT phone and broadband customers.
What does the copper line fault mean?  How might I discover if it is an internal issue before I get an engineer in please?

any repairs to your extensions are your responsibility as you have connected a phone to the test socket and the fault was still there there will be no charge the £100 you were warned of is if the fault was with your extensions then a charge is made but you have eliminated that by your tests they will only fix internal problems if you pay them for it
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