The explanation is that charges have been so reduced that the telephone has been brought within the reach of practically every business house and every family.

Until the year 1900 every telephone subscriber had to pay $240 a year, and manifestly only families in affluent circumstances could afford such a luxury.

About that time a new system of charges known as the "message rate" plan was introduced, according to which the subscriber paid a moderate price for a stipulated number of calls, and a pro rata charge for all calls in excess of that number.

Probably no single change in any business has had such an instantaneous effect.

The telephone, which had hitherto been an external symbol of prosperity, suddenly became the possession of almost every citizen.
Other companies than the Bell interests have participated in this development.