I worked for AT&T and can vouch that the Central Office has giant batteries that supply power (and usually a generator as well).
The batteries sit in giant barrels…they’re huge! I mostly did residential installs so didn’t get a chance to go into a CO often, but all the servers and battery vats and everything were very cool.
The line supplies it’s own power, separate from the mains power. IIRC, [edit: incorrectly – see downthread] the line sits at 3v, goes up to 24v on ring, and 9v when off hook.
I used to take advantage of this and use my landline to power various small electronics that I wanted to stay on if the power went out.
On the power poles, the telephone line is in the thicker bundle lower down the pole, so it’s less likely to get damaged.
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