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Measured telephone service (MTS) is a billing model where a telephone company charges for calls by the minute. The rate per minute differs from one company to another and may differ depending on the time of day. MTS is different from basic monthly service charge, which is charged based on use and is not constant, but rather is charged in addition to the rate per minute charge.
Measured telephone services depend on capacity cost, changes in extended service, and changes in federal funding. With growing number of customers, telephone companies are forced to increase the capacity of telephone infrastructure to reach the required capacity. Local calls may also be provided without an expensive calling rate.