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.
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.
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At that time independent phone sex was more dangerous, as Lee's movie portrays.
Once means of transmitting payment were developed, phone sex turned into primarily a commercial activity, with customers (overwhelmingly male) and sellers (overwhelmingly female).