This report describes the context and goals of the Higher Education Funding Council for England's e-University project to develop Internet-based higher education. It summarizes the proposed business model and outlines next steps in implementing the project. A February 2000 letter announced the project and invited higher education institutions (HEIs) to send information on related activities. A steering group was established, and a business model study was commissioned from PricewaterhouseCoopers (PwC), together with other supporting studies. HEI comments showed the importance of producing a business model enabling a wide range of HEIs and other partners to contribute. PwC produced a model that satisfies this criterion and can deliver e-learning effectively and with high standards. The PwC report views the e-university as an organization that will support the development and delivery of e-programs. It will work with HEIs and other partners to meet project goals. E-universities can have a holding company, operating company, subsidiary companies, small executive, committee for academic quality, program/service providers, and joint venture partners. Benefits to HEIs of working with e-universities include: access to specialist technological and other skills, e-tools, and services and access to global marketing intelligence and global reach. Appended is a list of the e-University Steering Group. (SM)