When establishing a distance education program, one of the first things considered is the cost of the system. Several cost components factor into the design of a distance education system:
Technology - hardware (e.g., videotape players, cameras) and software (e.g., computer programs).

Transmission - the on-going expense of leasing transmission access (e.g., T-1, satellite, microwave).

Maintenance - repairing and updating equipment.

Infrastructure - the foundational network and telecommunications infrastructure located at the originating and receiving campuses.

Production - technological and personnel support required to develop and adapt teaching materials.

Support - miscellaneous expenses needed to ensure the system works successfully including administrative costs, registration, advising/counseling, local support costs, facilities, and overhead costs.

Personnel - to staff all functions previously described.

Although the costs of offering distance education courses may be high, there are high costs associated with offering conventional courses. Benefits of distance education courses to the learner include:
Accessible training to students in rural areas.

Students may complete their course of study without suffering the loss of salary due to relocation.

Students are exposed to the expertise of the most qualified faculty.

Perhaps the question institutions must answer is whether it is part of their mission as educators to offer programs to those who might not be reached without distance education. The primary benefit to educational institutions through distance education may be the increased number of non-traditional students they are able to attract and serve. Research also suggests that as programs become more efficient, program costs should decrease.