Assessment of the quality of distance education institutions has become an important issue that needs to be addressed to ensure program survival. This study uses SERVPERF model to identify the differences that exists in students' perception of service quality in public and private universities in Malaysia that offer distance education. Our study confirms that this model is valid and reliable. We find that the students' overall perception of service quality is lower in all five dimensions of service quality for the private universities. The dimensions that influence overall service quality are noticeably different for public and private universities. This suggests that private universities need to improve their service provision in order to remain competitive. Managerial implications of the major findings are discussed.