The Real Story behind the Failure of U.K. eUniversity.

Abstract

Number 4 2004 • EDUCAUSE QUARTERLY 5 In February 2000, with much fanfare, the British government announced funding of £62 million ($113 million) for a national, commercial euniversity called United Kingdom eUniversity (UKeU). The initiative was touted as an innovative response to the perceived opportunities and threats of online higher education—in the form of U.S. institutions such as the University of Phoenix Online and the University of Maryland University College, not to mention the many—at the time—dotcom start-ups such as NYU Online and Cardean University. Despite considerable resources and a lengthy development period given to UKeU, the government announced in February 2004 that the project had failed to meet recruiting targets, and it quickly became clear that the initiative would not survive. Recruitment and marketing have ceased, and negotiations are under way to transfer certain activities and assets to the U.K. higher education sector. In the wake of the announcement, much press coverage has accused the venture of wasting public funds and pursuing an unrealistic business model. Such criticism raises important questions: To what extent was UKeU fundamentally misconceived? Or was it simply saddled with impossible expectations?