Wide Area Telephone Service (WATS) was a specialized telecommunications service that offered businesses access to long-distance telephone lines at reduced rates. By using WATS, organizations could manage both incoming and outgoing long-distance calls more economically.
Characteristics of WATS
Incoming WATS
- 800 Numbers: Callers dial an 800 number instead of a specific area code. These calls are free for the caller, with the charges being borne by the organization that holds the WATS line.
- Cost Efficiency: Organizations benefited from paying a set fee for a block of time, thus managing costs effectively.
Outgoing WATS
- Reduced Rates: Businesses could make long-distance calls at significantly lower rates compared to standard long-distance service.
- Usage: Outgoing WATS was commonly used for frequent and bulk long-distance communications, aiding in cost reduction and efficiency.
Historical Context of WATS
Origins and Evolution
- Implementation: WATS was introduced by AT&T in the 1960s to cater to the growing needs of businesses requiring economic long-distance communication solutions.
- Growth: Initially, WATS was predominantly used by large corporations; however, as the service became more affordable, it was adopted by medium and small businesses.
- Decline: With advancements in digital technology and the internet, the reliance on traditional WATS significantly decreased.
Transition to Modern Services
- Toll-Free Services: The concept of toll-free numbers evolved from WATS, with the 800 number legacy being a mainstay in customer service frameworks.
- VoIP and Digital Communication: Modern solutions such as Voice over Internet Protocol (VoIP) have largely replaced traditional WATS services due to enhanced features and cost-efficiency.
Applicability of WATS
Business Applications
- Customer Service: Provided a toll-free number for customers to reach the business without incurring charges.
- Sales and Marketing: Enabled affordable communication with potential and existing clients nationwide.
- Internal Operations: Facilitated cost-effective long-distance communication within branch offices and partner organizations.
Related Terms
- Toll-Free Number: A telephone number that is free for the caller, with the recipient bearing call charges.
- VoIP (Voice over Internet Protocol): A technology protocol for delivering voice communications over IP networks such as the internet.
- Long-Distance Service: The telecommunication service enabling calls beyond local dialing areas, usually at higher costs.
FAQs
What Are the Cost Benefits of Using WATS?
WATS provided considerable savings for businesses that made or received a large volume of long-distance calls by offering flat-rate pricing and bulk discounts.
How is WATS Different from Traditional Long-Distance?
Unlike traditional long-distance which charged by the minute or distance, WATS offered a more predictable and cost-effective pricing structure through fixed-rate billing.
Is WATS Still in Use Today?
While traditional WATS services are largely obsolete, the core concept survives through modern toll-free services and digital communication technologies such as VoIP.
References
- “Historical Overview of Telecommunications” - Telecommunications Industry Archive.
- “The Evolution of Long-Distance Calling” - Journal of Telephony and Communications.
- “Telecommunications Legislation and Market Trends” - Government Telecommunications Committee Report.
Summary
Wide Area Telephone Service (WATS) played a pivotal role in the evolution of business communication by offering reduced rates for long-distance calls, both incoming and outgoing. Though largely replaced by modern digital solutions, WATS laid the groundwork for today’s toll-free services and remains an important part of telecommunications history.
