Wide Area Telephone Service (WATS)

Definition

Wide Area Telephone Service (WATS) is a telephone service that provides businesses with access to long-distance telephone lines at a reduced rate. This service is designed for commercial use and allows organizations to manage inbound and outbound long-distance calls efficiently. When dialing an incoming WATS line, callers use an 800 number instead of a specific area code and are not charged for the service. The organization holding the WATS line incurs the cost of incoming calls. Additionally, costs of outgoing calls using a WATS line are generally lower per call compared to conventional long-distance services.

Examples

Customer Support Centers: An organization uses a WATS line with an 800 number for its customer support center. Customers can call for assistance without incurring any charges, while the business pays for the incoming calls at lower rates.
Sales Hotlines: A company sets up an 800 number for its sales inquiries, allowing potential customers to call for free. The company covers the call costs but benefits from the increased sales opportunities.
Internal Communications: A multinational corporation uses WATS lines for internal communication between offices located in different regions, reducing long-distance call expenses significantly.

Frequently Asked Questions

1. How does Wide Area Telephone Service (WATS) work?

WATS works by providing businesses with access to long-distance telephone services at reduced rates. Callers to an 800 number are not charged for the call, while the business holding the WATS line incurs the cost of the incoming call. Outbound calls using WATS lines are also billed at lower rates compared to regular long-distance services.

2. What is the difference between inbound and outbound WATS?

Inbound WATS handles incoming calls made to 800 numbers, with the organization bearing the cost. Outbound WATS is used for making long-distance calls from the organization, offering reduced rates compared to standard long-distance services.

3. Who benefits from WATS?

Businesses and organizations with high volumes of long-distance calls, such as customer support centers, sales teams, and multinational corporations, benefit the most from WATS by managing their telecommunication expenses more effectively.

4. Are WATS lines still relevant today?

While the popularity of WATS has declined with the advent of VoIP and other modern communication technologies, some organizations still use WATS lines to take advantage of their cost-saving benefits for long-distance calls.

5. How do I set up a WATS line for my business?

To set up a WATS line, contact your telecommunications provider to inquire about their WATS service options, pricing, and terms. They will guide you through the setup process based on your business requirements.

800 Number: A toll-free telephone number that allows callers to reach businesses without incurring any charges. The business holding the 800 number pays for the incoming calls.
VoIP (Voice over Internet Protocol): A technology that allows voice communication and multimedia sessions over the Internet, offering an alternative to traditional telephone lines.
Telecommunications: The transmission of information over significant distances by electronic means, such as telephone, radio, or the Internet.
Long-Distance Call: A phone call made between different geographic areas, typically involving higher costs compared to local calls.

Online References

Suggested Books for Further Studies

“Telecommunications Essentials: The Complete Global Source for Communications Fundamentals, Data Networking and the Internet, and Next-Generation Networks” by Lillian Goleniewski
“Business Data Communications and Networking” by Jerry Fitzgerald and Alan Dennis
“Telecommunication Networks: Protocols, Modeling and Analysis” by Mischa Schwartz

Fundamentals of Wide Area Telephone Service (WATS): Communications Basics Quiz

### What does WATS stand for? - [ ] Wireless Area Telecommunication Service - [x] Wide Area Telephone Service - [ ] Worldwide Area Telephone Service - [ ] Wideband Area Telecommunication Service > **Explanation:** WATS stands for Wide Area Telephone Service, which provides businesses with access to long-distance telephone lines at reduced rates. ### What number prefix do callers dial for an incoming WATS line? - [ ] 900 - [x] 800 - [ ] 700 - [ ] 555 > **Explanation:** Callers dial an 800 number for an incoming WATS line, allowing them to reach businesses without being charged for the call. ### Who bears the cost of an incoming WATS call? - [x] The organization holding the WATS line - [ ] The caller - [ ] The telecommunications provider - [ ] No one > **Explanation:** The organization that holds the WATS line bears the cost of incoming calls, allowing callers to make toll-free calls. ### Is WATS primarily aimed at personal or commercial use? - [ ] Personal use - [x] Commercial use - [ ] Both personal and commercial use - [ ] Neither > **Explanation:** WATS is primarily aimed at commercial use, providing businesses with access to long-distance telephone lines at reduced rates. ### What is the main advantage of using WATS for businesses? - [ ] Higher call quality - [ ] Unlimited data usage - [x] Reduced rates on long-distance calls - [ ] Enhanced privacy > **Explanation:** The main advantage of using WATS for businesses is the reduced rates on long-distance calls, helping to manage communication expenses effectively. ### Which type of service is a typical alternative to WATS for long-distance communication? - [x] VoIP (Voice over Internet Protocol) - [ ] Satellite communication - [ ] Short-range radio - [ ] Analog telephone > **Explanation:** VoIP (Voice over Internet Protocol) is a typical modern alternative to WATS for long-distance communication. ### In the context of WATS, what does an "800 number" signify? - [ ] A number used for international calls only - [x] A toll-free number for incoming calls - [ ] An emergency response number - [ ] None of the above > **Explanation:** An "800 number" in the context of WATS signifies a toll-free number for incoming calls, where the organization pays for the call. ### Why might a customer support center use WATS? - [ ] To limit the number of incoming calls - [ ] To avoid telecommunication expenses - [x] To allow customers to call for free while managing costs - [ ] To provide high-speed internet access > **Explanation:** A customer support center might use WATS to allow customers to call for free while managing the organization's telecommunication costs effectively. ### What is the key difference between inbound and outbound WATS? - [ ] Inbound WATS is for local calls only - [x] Inbound WATS handles incoming calls; outbound WATS manages outgoing calls - [ ] Outbound WATS is more cost-effective - [ ] There is no difference > **Explanation:** The key difference is that inbound WATS handles incoming calls made to 800 numbers, while outbound WATS manages outgoing long-distance calls. ### How relevant is WATS in the age of modern telecommunication technologies? - [ ] Totally obsolete - [ ] Increasing in popularity - [x] Less common but still relevant for some businesses - [ ] More critical than ever > **Explanation:** While the use of WATS has declined with the advent of modern telecommunication technologies like VoIP, it remains relevant for some businesses that benefit from its cost-saving advantages on long-distance calls.

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