That seems like a fail-safe interpretation of communication: if there is no communication, stop the train. But that's a special case. GSM-R is much more than line authorities.
>GSM-R is a secure platform for voice and data communication between railway operational staff, including drivers, dispatchers, shunting team members, train engineers, and station controllers.
Designing the communication network itself in such a way that the entire thing can apparently fail, doesn't sound "fail-safe" to me. (Though its failure may trigger fail-safes in higher-level systems.) In particular, some functions may require communications to be "safe"; e.g., emergency personnel not being able to communicate is not "safe".
But perhaps this is being overstated in the vague reporting, and it's only a regional failure.
Safe in this kind of context means no property damage or no casualties or no injuries. Not no financial damage. Sometimes repairable property damage is accepted if that is active or passive safety component.