This paper discusses challenges to the European Association of Distance Teaching Universities (EADTU) in using technology. The first section deals with external challenges to EADTU institutions, including competition from new services, new funding programs, pressure from national governments, and the Europeanization of education. Internal challenges are identified as the need for clearly defined policies regarding transborder activities, low use of technology in member institutions, communication between member institutions (postal services, courier services, telephone, telefacsimile, face-to-face meetings, and audioconferencing), joint course production, transborder delivery of courses, and European-wide course design and delivery. Requirements for member institutions indicated by these challenges are summarized: greater use of established technologies; development of new course designs that exploit new technologies; and development of better communications systems between EADTU institutions. Four references are listed. (MES)