Degree eds education online

The U.S. Army is preparing to spend $600 million on online education. Universities and industry are eager to cash in.

BASIC TRAINING WILL NEVER BE THE same. In a step that brings the military into the Internet age, the U.S. Army and Navy are committing an unprecedented sum of money to online education.

The Army is budgeting almost $600 million over the next six years to enable millions of soldiers to earn college degrees and technical certificates online. The Navy has already spent $2 million -- and has requested a lot more -- on an educational portal that its sailors and officers can access from a ship at sea or anywhere in the world.

A sailor might choose to study anything from Java programming to creating and configuring a Web server. And a soldier could earn a bachelor's degree in political science or history, or even an MBA.

The military's efforts are making an impact in the civilian world, reaching private industry and academia. "This is the largest distance-learning effort that has occurred in the U.S." says Richard Hezel, president of Hezel Associates, an educational consulting firm in Syracuse, N.Y. "If significant numbers of soldiers enroll in these programs, it will be the largest [online education program] in the world."

All told, the Army and Navy hope to reach more than 2 million personnel online. That, along with the Army's massive bankroll, has universities and education firms scoping for opportunities to cash in.

Some observers are comparing the military's online education initiatives to the GI Bill, which since World War II has encouraged men and women to obtain an education after they leave the military. "The GI Bill established norms of practice for higher education in the second half of the 20th century," says Gary Miller, associate VP for distance education at Pennsylvania State University. "This could do the same for online learning."

The military's purpose is self-serving: The armed forces hope the push toward the Net will turn around a drop-off in recruiting. Last year, the Army's goal was to sign up 74,000 new recruits. It fell short by about 6,300, or 8.5 percent. Similar problems have plagued the Navy and the Air Force.

"With this program, we're telling them they don't have to choose between a college education and serving their country," says Louis Caldera, Secretary of the Army. "They can learn while they serve."

That's the thinking behind the Navy Learning Network -- an educational portal that will enable sailors to get technical training online anytime, anywhere - even if they're on a ship in the Persian Gulf or the South China Sea. The Navy's project is expected to launch before the end of the year, according to Phyllis Ferguson, deputy director of the Education and Training Strategies Division for the Chief of Naval Education and Training.

Under the Army University Access Online program, or eArmyU, active-duty soldiers can pursue a college or technical degree by taking courses offered through an online educational portal created for the Army. Soldiers who choose to enroll in such courses will get a laptop computer, printer and internet access. A limited version of the program is supposed to roll out in January.

Of course, soldiers have long been able to take correspondence courses and enroll in courses at schools near their bases. But logistics have made it difficult for them to earn a degree. The Army says it takes the average soldier about 11 years to earn an associate's degree.

The $600 million figure the Army is budgeting for the project hasn't escaped the attention of companies involved in online education. Campus Pipeline (which builds Web platforms for universities and colleges), Pathlore (an Ohio-based company that supplies the software infrastructure for the Navy Learning Network) and dozens of others want a piece of the Army contract. "This is big," says Robert Perry, VP of federal systems for Pathlore. "The military has a new vision, and we want to play a significant role in developing it."

In academia, too, interest is high. Penn State is hoping to participate in the Army's new initiative through a consortium of schools that offer online education programs. The University of Alabama at Tuscaloosa is mulling a partnership with other schools to offer courses to soldiers. And the University of Maryland's University College, which has delivered courses to the military since 1949 and has a well-established online education program, is also vying for a position on the eArmyU front lines.

"We expect this contract to get a record number of bids," says Iris Bulls, principal deputy assistant secretary of the Army.

Skeptics say this is unlikely; some call the Army's initiative a pipe dream. They question the Army's decision to award the contract to one company or institution that will provide everything from hardware to course content. Most potential subcontractors believe only large companies such as EDS, IBM or TRW could pull off something of that scale.

"When they get through gathering all the pieces, some of these potential prime contractors are questioning whether the contract will even be profitable," says Ted McAleer, director of campus development for Campus Pipeline. "I don't think any of them believe they'll get rich off the Army."

Universities are also questioning whether the Army is being realistic. It wants, for example, all colleges and universities - from Ivy League schools to community colleges - to charge the same fees for course tuition. "That would severely limit the institutions they get to participate' says Penn State's Miller, noting that most university administrators believe the value of a college degree differs from one institution to another.

Nevertheless, the potential for profits is there. NETg, a subsidiary of Boston-based Harcourt General, already provides training content for 50,000 Navy personnel and has a $1.1 million contract to provide 85 percent of the content on the Navy Learning Network when it is launched.

If nothing else, analysts note that the military's march into online education could, at the very least, seed the market and help justify development costs for other companies. "We see this as the big 800-pound gorilla stepping into the space and setting a standard," says Andy Cooley, senior VP of marketing for Campus Pipeline. "For strategic reasons, there are advantages to playing in this game."