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Deregulation May Increase Telephone Rates

But in the near future, Kinchla says, the Harvard Student Telephone Office (HSTO) plans to simplify long-distance service and offer students a choice between two long-distance plans. The first will charge a 29-cent per-minute day rate, with 12 and 13 cents per minute for evening and night calls, respectively. The second plan offers a 15-cent per-minute flat rate.

Harvard telephone users will save a total of $350,000 this year under the new plan.

Students often complain that they are dissatisfied with their long-distance rates, but Kinchla says that the HSTO's plan is the least expensive option.

Other long-distance vendors may offer very low flat rates, but fail to publicize the fine print.

According to Kinchla, these companies may limit the low rates to calls under seven minutes--a time frame that may benefit businesses but can prove expensive for students making extended calls to friends and family.

Pre-paid calling cards may also offer an attractive way to circumvent Harvard's long distance rates, but students usually find themselves paying more.

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Although most phone cards advertise low per-minute rates, the savings are almost always offset by per-call fees that range from 70 to 95 cents.

"Even if you get a voice-mail message, that's 75 cents without even speaking to somebody," Kinchla says.

With the advantage of a large calling volume, the University has the leverage to negotiate long-term contracts with its long-distance carriers, Kinchla says.

Harvard currently receives long-distance service from MCI, and although both MCI and the University have an ongoing option to renegotiate, the contract protects students from the more frequent fluctuations of the long-distance market

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