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In some countries, such as Canada and the United States, long-distance rates were historically kept artificially high to subsidize unprofitable flat-rate local residential services. [citation needed] Intense competition between long-distance telephone companies narrowed these gaps significantly in most developed nations in the late 20th century.
Wide Area Telephone Service (WATS) was a flat-rate long-distance service for customer dial-type telecommunications in the service areas of the North American Numbering Plan (NANP). The service was between a given customer phone (also known as a "station") and stations within specified geographic rate areas, employing a single telephone line ...
LATAs contribute to an often confusing aspect of long-distance telephone service. Due to the various and overlapping regulatory limitations and inter-business arrangements, phone companies typically provide differing types of “long distance” service, each with potentially different rates:
These call charges can be calculated on a fixed per call basis, a variable basis depending on the time or distance of the call, or a combination of the two. Call charges can even vary at different times of the day. For many local calls the charge is zero; see flat rate.
Each service advertised rates that were significantly lower than most telephone operators were charging at the time; 10-10-321, for instance, was a straight pay-per-minute service charging 10 cents per minute, while 10-10-220 was mostly a pay-per-call service, with any call up to 20 minutes charged a flat 99 cents, and both services charged the ...
Flat rate is a pricing scheme whereby the customer pays a fixed price for a service regardless of how long the worker takes to carry out the service. Flat rate manuals are based on timed studies of the typical time taken for each type of service.
Within most North American rate centres, local wireline calls are free, while calls to all but a few nearby rate centres are considered long distance and incur toll fees. In a few large US cities, as well as many points outside North America, local calls are not flat-rated or "free" by default.
Unlike a wire center (which is the actual physical telephone exchange building), a rate center is a regulatory construct created primarily for billing purposes. Each rate center is associated with: a geographical place name (city, province/state) a nominal physical location (V and H co-ordinates) for distance calculations for billing purposes.
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