The tech shakeout hasn't stopped investors from launching an online university in Asia; one that they hope will skirt the pitfalls that have claimed many a dot-com.
Universitas 21 Global (U21G), an e-university based in Singapore, is set to commence classes for its first batch of MBA students this week. Students who have signed up for U21G's courses will receive their entire MBA education online.
Key success factors that the venture hopes it has in its favour: they think they are doing it bigger, with more brick-and-mortar universities involved, than anyone else.
"We are not some e-learning company. We are a credible e-university that is backed by universities around the world," said Vijay Srinivasan, U21G's vice president of sales.
The institution is a joint venture between Thomson Learning, the education arm of US-based IT firm Thomson Corporation, and 16 tertiary institutions. You won't find any Ivy League schools here, but a respectable roll call of colleges such as the University of Glasgow, the University of Virginia, the National University of Singapore, the University of New South Wales, the University of Hong Kong and China's Peking University.
"Our board has given us a three-year timeframe to break even, which goes to show they are taking a long-term view on this venture," said Srinivasan. "Most Silicon Valley firms are expected to produce return on investment in 12 months or else they're out," he said.
Srinivasan believes U21G's online MBA programs can find a niche in a largely untapped market. Citing research from UNESCO (United Nations Educational, Scientific and Cultural Organisation), he said there is an unmet US$111bn (£68bn) global demand for higher education.
"In Asia-Pacific, more than 32 million students, especially those from China and India, are expected to seek higher education courses by 2010. Brick-and-mortar institutions can never cope with this demand," Srinivasan said.
Also, courses offered by U21G can cost up to 90 percent less than what students would pay for overseas studies, he claimed.
Srinivasan said costs vary by country depending on their purchasing power parity. In Singapore, an e-MBA programme costs around $11,850 while in India, the same programme is offered at $9,850.
However, he conceded that there is resistance to the idea of a online degree and that some attitude-changing marketing work remained to be done.
Eight weeks into its launch, he said U21G has received 400 applications from around the world, some even coming from remote regions in Africa. The school is targeting 500 students by year-end and 2,000 by next year.
Harnessing technology for the online classroom
In preparation for the launch of its e-classes, the university spent eight months developing tools for students to access coursework and interact with counterparts worldwide.
Implemented by India-based IT services firm Satyam Computer Services, the tools try to "mirror real-life classroom experiences". "We stress-tested the system through a 100,000-user simulation to make sure it is robust," he added.
On top of providing course materials, the system provides features such as Web chat and online forums so students can discuss assignments with peers and professors across different time zones. The school is also planning to add an Internet telephony feature so students can schedule phone calls with their tutors without incurring IDD charges.
To ensure all students receive individual attention, Srinivasan said the school has signed service level agreements with its contract professors from member universities. For example, he said the contract makes it compulsory for all lecturers to respond to student emails within 24 hours.
