Typically the telephone companies would bill callers to chat lines and then remit 45% of the money collected to chat line operators.
The telephone companies placed the chat line charges on a customer's local phone bill.
With the progress of technology it became more practical, convenient, and economical for providers to work out of their homes.
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By the end of the 1980s, nearly all of the major local phone companies in the United States, plus the major long distance carriers, were actively involved in the adult chat line business.
The telephone companies would provide billing services for chat line companies.
If a customer disputed a charge, the telephone company would usually “forgive” the charge but block the caller from calling any other chat lines.
By 2007 only Verizon, Sprint and AT&T remained in the chat line business in the U. By 2007 Verizon and MCI had merged and only a few chat line companies remained active as a result.
Originally phone sex services consisted of a managed network of dispatchers (live or automated) and erotic performers.