Wikipedia:

Foreign exchange station

A Foreign Exchange Station, or FXS, is a telephone interface which provides battery power, sends dial tone, and generates ringing voltage. A standard telephone plugs into such an interface to receive telephone service. Strictly speaking, a telephone exchange is an example of an FXS, as is the plug on the wall, though the term is rarely applied except in connection with foreign exchange service.

In a nutshell

FXS is any device that, from the point of view of a telephone, seems to be a telephone exchange. As such, it should be able to supply power to the connected telephone, provide ring signals and dialtone, understand when phone goes on-hook or off-hook, and send and receive voice signals.

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