To investigate multiple effects of the interaction between V. cholerae and phage on cholera transmission, we propose a degenerate reaction-diffusion model with different dispersal rates, which incorporates a short-lived hyperinfectious (HI vibrios) state of V. cholerae and lower-infectious (LI vibrios) state of V. cholerae. Our main purpose is to investigate the existence and stability analysis of multi-class boundary steady states, which is much more complicated and challenging than the case when the boundary steady state is unique. In a spatially heterogeneous case, the basic reproduction number
$\mathscr{R}_{0}$ is defined as the spectral radius of the sum of two linear operators associated with HI vibrios infection and LI vibrios infection. If
$\mathscr{R}_{0}\leq 1$, the disease-free steady state is globally asymptotically stable. If
$\mathscr{R}_{0}\gt 1$, the uniform persistence of phage-free model, as well as the existence of the phage-free steady state, are established. In a spatially homogeneous case, when
$\ \;\widetilde{\!\!\!\mathscr{R}}_{0}\gt 1$, the global asymptotic stability of phage-free steady state and the uniform persistence of the phage-present model are discussed under some additional conditions. The mathematical approach here has wide applications in degenerate Partial Differential Equations.