telemetry devices have been around for years. 10 years ago, I saw a dildo that was controlled thru phone lines. (and that was using a 14.4k connection)
http://www.cyber.com.pl/archiwum/sex/4.shtml
This guy is the guy that built it. But, he never developed the idea any further than a simple dildo that was controlled thru phone lines.
http://character-shop.com/waldo.html
http://character-shop.com/images/armwaldo.jpg
he called it a "tele-dil-waldo"