I live in a village of similar population in the UK and our telephone exchange looks just like a bungalow, situated on the end of a road dotted with similar houses. It's set back further from the road with tall hedging but I managed to cycle past it for eight years without even realising what it was. Weird, but in an opposing way :-)
Background noise is the motors for the tone generator, probably the cable compressor too. The louder noises are the call routing and reset. Background noise would normally be a fair bit louder - I'm guessing he had mic right up against the rack for this.