Wide Area Telephone Service

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In U.S. telecommunications, a Wide Area Telephone Service (WATS) is a toll service offering for customer dial-type telecommunications between a given customer [user] station and stations within specified geographic rate areas employing a single access line between the customer [user] location and the serving central office. Each access line may be arranged for either outward (OUT-WATS) or inward (IN-WATS) service, or both.

In other words, with "outward WATS" the calling party may make an unlimited number of long distance calls (toll calls), for a fixed price, within pre-determined time and distance constraints. With long distance costs at historic lows, this type of arrangement has become common, and instead of "outward WATS" it is known simply as a "flat-rate plan."

With "inward WATS," subscribers are issued a toll-free telephone number, typically beginning with a designated toll-free area code. Inward WATS service was introduced by AT&T in 1967 in order to reduce time spent by operators processing toll-collect calls for businesses. The first inward WATS area code issued was 800, with 888, 877, and 866 area codes being planned and implemented in the 1990s, and 855, 844, 833 and 822 reserved for future expansion. Telephone users within a designated area may call an inward WATS telephone number without having to pay a toll charge - the recipient pays for the calls at a flat rate or other predetermined rate. Growth of inward WATS exploded in the 1980s as technology allowed companies to build business with nationwide toll-free 800 numbers which could ring at multiple call-centers.

"Inward WATS" service is available with Automatic Number Identification (ANI), which could be described as a more sophisticated form of Caller ID.

Offerings for fixed-rate inter-LATA and intra-LATA services are measured by zones and hours.