That does not sound like POTs FX service; rather some kind of tie line set up.
True FX service is a nailed interoffice trunk between your c.o. and the distant c.o. The line side of the service; i.e. from your c.o. to your premises, is no different than any local loop and requires no special equipment on your premises.
Then, there is "phantom" FX service, still in use in the Los Angeles metro area (and perhaps other areas where SBC rates a particular office code (prefix) as being in downtown LA when, in fact, it is in a c.o. in a nearby town that would otherwise be a toll call to downtown LA. That is simply a billing accounting exercise.