Up to (around) 2007 MB used flexible service schedule, so a low-mileage car could see the service indicator come-up in around 15-18 months (not fixed). The system checks how many starts, journey length, engine temperature etc etc to guesstimate the condition of the engine oil.
Some diesel engines have an oil quality sensor which measures the amount of water in the oil by checking the electrical resistance of an oil sample - but as far as I understand this is not used for the service scheduling system, so in fact the oil condition is not tested directly, but rather estimated based on the car's usage history.
However, in (around) 2007 MB changed this to fixed service schedule, i.e. every 12 months. This was merely an administrative change to aid fleet buyers and leasing companies in working-out the service schedule and service cost in advance.
Either way, this only applies to low-mileage car - obviously if the car exceeds the specified mileage between service intervals, the service indicator will come up sooner.
Said that, for cars with oil quantity sensor (i.e. electronic/dipstick-less oil level checking), the service scheduling system will know whenever oil has been added and will take it into account as the new oil 'refreshes' the old oil - so if the car consumes oil, or has a leak, and you have to regularly add engine oil, you may find that the mileage between servicing is miraculously increased...