A telephone line may be considered to be a source of some 50/60V volts DC with a source impedance of about 1 kilo-ohm.
During ringing, in place of DC,
an AC voltage of 70 to 80 volts (at 17 to 25 Hz) is present across the telephone line.
When the subscriber lifts the handset,
the same is sensed by the telephone exchange and the ringing AC voltage is disconnected and DC is reconnected to the line.
Lifting of the handset from the telephone cradle results in shunting of the line’s two wires by low impedance of the telephone instrument.
As a result, 50V DC level drops to about 12 volts across the telephone instrument. During conversation, the audio gets superimposed on this DC voltage.