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History of Chat Lines: Most of the best phone dating and chat services are automated and allow incoming callers to choose who to talk with among other callers. The chat line industry has taken on new dimensions in the Internet age. Chat line service providers typically advertise their services in men's magazines, on late-night cable television, and online. Some phone dating services use state-of-the-art customer acquisition techniques such as active database marketing to reach potential clients. These advertising methods almost invariably target men, the primary consumers of phone dating services.

By the end of the 1980s, nearly all of the major local phone companies, plus the major long distance carriers were actively involved in the chat line business. The telephone companies would provide billing services for chat line companies. 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 customers local phone bill. 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. By 2007 Verizon and MCI had merged Verizon MCI Merger. Verizon provided billing services to calls made in Massachusetts, Rhode Island and Maine. AT&T and MCI offered nationwide collection services, with a cap of $50 per call.

By 2007, only a few chat line companies remained active. One of the largest were was The Providence Telephone Company. The Providence Telephone Company consolidated its operations and began to let customers call their chat lines for free. The company generated revenue by selling advertisements on its chat lines, which callers would have to listen to, before being connected to other callers. The group Citizens for Responsibility and Ethics in Washington estimates that phone dating services earns telephone companies close to $500 million per year.
According to the Providence Telephone Company, the average length of a call to a chat line varied by sexual orientation. Gay callers would talk for about 20-minutes per call, while straight callers would talk for about 10-minutes per call.

About 30% of all callers were physically challenged (e.g. blind) or unable to leave their homes.


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