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.

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Originally phone sex services consisted of a managed network of dispatchers (live or automated) and erotic performers.

Performers would come to a studio where they received a cubicle, coaching, and cash incentives to keep callers on the line longer.

With the progress of technology it became more practical, convenient, and economical for providers to work out of their homes.

Human dispatchers — female, except for gay male phone sex — answered the advertised phone numbers, processed payment via credit card, chose who of the available performers in the dispatcher's judgment best matched the clients' fantasy (grandma, black girl, college girl, etc.), and connected the client with the provider. Either could hang up, though some services put economic pressure on providers not to do so.

Phone sex is a conversation between two or more people on the phone where one or more of the individuals is describing the act of sex.

Phone sex takes imagination on both parties' part; virtual sex is difficult if the operator does not put the images in the head of the caller and the caller must be open to the pleasure as well.Software platforms were custom written to handle money collection and transfer, connecting caller and sex worker though neither could see anything but the platform's phone number, and metering the connection.Details vary significantly from one platform to another, but the provider may be given a personal page on the platform to use however she (sometimes he) wishes.The sexually explicit conversation takes place between two or more persons via telephone, especially when at least one of the participants masturbates or engages in sexual fantasy.Phone sex conversation may take many forms, including: guided fantasy, sexual sounds, narrated and enacted suggestions; sexual anecdotes and confessions; candid expression of sexual fantasies, feelings, or love, and/or discussion of very personal and sensitive sexual topics.Typically the telephone companies would bill callers to chat lines and then remit 45% of the money collected to chat line operators.