If I translate the parts you can find the answers.
when I dial the number with the ....... when I am on the street I use the cell phone my friend lives far. we have a long call....... I speak to ..... to do long distance calls. I end the call .......... handset my friend does not live in my town. she live far in Europe. to call her I need to call ...... distance
They want to know what I am doing because the question ¿Qué estás haciendo? means what are you doing? In this way, estás is the conjugation of the verb estar for the second person singular. On the other hand, haciendo is the gerund of the verb hacer. So estar + a verb in gerund form the present progressive. Finally, this is an example of a dialogue: