Channel distortion degrades the performance of speech recognizer in telephone environment. It mainly results from the bandwidth limitation and variation of transmission channel. Variation of channel characteristics is usually represented as baseline shift in the cepstrum domain. Thus undesirable effect of the channel variation can be removed by subtracting the mean from the cepstrum. In this paper, to improve the recognition performance of Korea connected digit telephone speech, channel compensation methods such as CMN (Cepstral Mean Normalization), RTCN (Real Time Cepatral Normalization), MCMN (Modified CMN) and MRTCN (Modified RTCN) are applied to the static MFCC. Both MCMN and MRTCN are obtained from the CMN and RTCN, respectively, using variance normalization in the cepstrum domain. Using HTK v3.1 system, recognition experiments are performed for Korean connected digit telephone speech database released by SITEC (Speech Information Technology & Industry Promotion Center). Experiments have shown that MRTCN gives the best result with recognition rate of 90.11% for connected digit. This corresponds to the performance improvement over MFCC alone by 1.72%, i.e, error reduction rate of 14.82%.