The Jargon File (version 4.4.7, 29 Dec 2003):

teledildonics
 /tel`@?dil?do'?niks/, n.

    Sex in a computer simulated virtual reality, esp. computer-mediated sexual
    interaction between the VR presences of two humans. This practice is not
    yet possible except in the rather limited form of erotic conversation on 
    MUDs and the like. The term, however, is widely recognized in the VR
    community as a ha ha only serious projection of things to come. ?When we
    can sustain a multi-sensory surround good enough for teledildonics, then
    we'll know we're getting somewhere.? See also hot chat.


The Free On-line Dictionary of Computing (30 December 2018):

teledildonics

    /tel"*-dil-do"-niks/ Sex in a
   computer simulated virtual reality, especially
   computer-mediated sexual interaction between the VR presences
   of two humans.  This practice is not yet possible except in
   the rather limited form of erotic conversation on MUDs and
   the like.  The term, however, is widely recognised in the VR
   community as a ha ha only serious projection of things to
   come.  "When we can sustain a multi-sensory surround good
   enough for teledildonics, *then* we'll know we're getting
   somewhere."

   [Jargon File]

   (1995-02-06)