Can I do my telephone interview while watching TV?

Definitely not. Remember that not only will a phone pick up the TV noises and act like a distraction for the interviewer, but the TV will also distract you and will give the worst impression of you to the interviewer. It is important to think about your environment when doing a telephone interview or video/Skype interview.

Read this article for some more tips on telephone interviews; 

Maarten Karremans