AT&T wasn't one to shy away from phone sex, even in the late 60s, where phone sex wasn't quite as accepted as it was now. Kudos, AT&T, on 40 years of phone sex. [Flickr]
That ad is actually from the early 1960s, and you're missing the text below. I presume it was a sort of a nod to the Princess phone, released in 1959, with it's lighted dial and multiple colours, it was popular as a bedroom phone.
Yeah, yeah, I know the caption is probably in jest, I'm just being a bell system stickler :P