With the first month's bill from the Harvard Student Telephone Office (HSTO) comes a flyer trumpeting cuts in international rates.

But even after the cuts, Harvard's rates, both domestic and international, are far higher than those available to residential customers across the country.

Harvard officials say their hands are tied by a dated contract with MCI WorldCom that leaves the long distance carrier to walk away with substantial profits while the University is forced to pass the high prices on to break even.

As Harvard looks to reevaluate its contract this year, MCI WorldCom's rivals are bucking for Harvard's business. If Harvard plays its cards right, the renegotiations of rates could mean substantial savings for students, who paid $4.5 million in HSTO bills last year.

And one company says it could save students some 20 percent on domestic rates.

In the meantime, students are stuck with rates that, while comparable with those at other colleges, drive the cost of phoning home out of this world.

Calling Home Costs

Domestic long distance rates from the HSTO vary from $0.12 to $0.29 per minute, depending on the time of day.

On the other hand, the three leading commercial long distance service providers, AT&T, Sprint and MCI WorldCom, all advertise dime-per-minute rates for residential customers. AT&T offers a nine-cent per minute plan for customers who will receive their bills online and MCI WorldCom recently launched a plan offering domestic calls for a nickel-a-minute on Sundays.

"It's outrageously more expensive than at home," says Tracy M. Long '00.

It doesn't get any cheaper running for the border: International callers are hit even harder. Canadian callers pay $0.06 to $0.13 more per minute than market rates for a weekend call home.

"It's a real hassle. Whenever I telephone my parents, I have them immediately call me back with their cheaper long distance rates," says Paul D. Todgham '99, co-prime-minister of the Harvard Canadian Club.

Students calling the U.K. are still worse off, hit with a charge of $0.30 per minute, two-and-a-half times the going rates offered by all three service providers at $0. 12.

Hands are Tied

Robert E. Grenier, manager of the HSTO, is quick to explain that Harvard is not getting rich off calls to Mom and Dad.