This report presents distance education as a viable alternative to more traditional college course-offerings. The argument is made that the most effective competitive strategies are innovative and effective educational strategies, of which distance education is one. The report first discusses distance education in theory and practice and reviews various typologies, distance delivery programs, and theoretical models. Next, the instructional considerations in using distance education are explored, including factors involved in student learning, teaching styles, and teacher role. Finally, the report presents the opportunities and challenges of distance education, including the steps needed for bridging the gap with higher education and what the future may hold for this form of education. Contains 62 references. (GLR)