What does it cancelled mean in my iPhone's call log?

Every time I try to call someone in particular it rings for a bit, then I hear three beeps and it says cancelled in the call log instead of outgoing call.

It means that the person your calling hangs up on you. Or you have a bad reception or your friend has a bad reception.

It means the call wasn't answered and you hanged up before it timed out to went to voicemail.