This paper is a broad review of ongoing and planned applications of the Internet and World Wide Web in higher education, and an analysis of key technical, educational, and broader social issues that these applications highlight. The report attempts to address the following issues about the Internet and the Web: (1) their potential for changing higher education; (2) their potential in helping universities reduce costs, as well as the possibility that distance learning, digital libraries, and virtual universities may make education available to students cheaply, and at any place or time; (3) the possibility that the Internet and World Wide Web may threaten higher education more than help it; (4) the possibility that for-profit providers who now deliver corporate training will compete with traditional colleges and universities; (5) possible responses of higher education institutions to such competition; (6) acquisition of needed hardware and software by institutions of higher education at affordable prices; and (7) the need for faculty to quickly adapt to styles of teaching and learning that, for example, emphasize interactive mentoring instead of traditional lectures. The report stresses that information technologies will transform the processes and products of learning and teaching and discusses some of the costs and benefits of such transformations, and the policy issues surrounding the prospect of fundamental structural change. (MAH)