The statement that signal flow analysis divides the entire network into OMSs (Optical Multiplex Sections) and identifies fault directionality is false. While signal flow analysis does help in locating faults, it is typically performed within a specific OMS or section rather than dividing the entire network at once. OMS segmentation is a physical or logical division, but signal flow analysis focuses on detailed fault location along signal paths rather than large-scale network segmentation. HCIP-Transmission clarifies these nuances to improve fault management precision.