Lyric discussion by Gladrino 

Cover art for Cut a Hole lyrics by Radiohead

I originally thought of it as being about a long distance relationship. He wishes that he could "come out of her phone", i.e. he misses actually seeing her as opposed to talking over the phone. This is supported by "down the cable lines, run under the earth".

He also want to be in "two places at once", so he want to be where his girlfriend is.

"Cut a hole", for me, is how he wishes he could make some kind of portal to be able to travel to her. It reminded me of the book The Subtle Knife, where using a knife you could "cut a hole" in the air to teleport. Probably not a deliberate reference, but that's what it led me to think of.

My Interpretation

Yes, I also thought of that book as soon as I heard the words.