Wednesday, May 22, 2002

Britain's Open U. Gets a New American Partner From the U.S. Operation It Is Closing By MICHAEL ARNONE This summer, Britain's Open University is closing United States Open University, the British institution's latest effort to break into the American market. Open University has a new American partner, though: one of the universities that participated in the venture that is being axed. The British institution, one of the largest providers of distance-education in the world, is completing negotiations under which the University of Maryland-Baltimore County would collaborate with Open University Worldwide, the university's commercial arm. "We thought it was the best business direction to take," says Scott A. Bass, dean of the graduate school and vice provost for research at UMBC. The American market is so large that Open University has to maintain a presence here, says Richard A. Maidment, currently vice chancellor of academic affairs at United States Open University, a wholly-owned subsidiary of Open University Worldwide. He is also liaison to Open University and Open University Worldwide, and he will continue to work with Open University after U.S. Open University shuts down. Mr. Maidment says that Open University is speaking with three companies and four other universities about possible partnerships, although he declines to name them. Open University announced in February that it would close U.S. Open University this summer. Despite its growth over two years, the American branch wasn't generating enough revenue or enrollment to offset growing debts, U.S. Open University officials said in February. Open University will have spent about $20-million by year's end on the existing American project. The decision to close left a number of institutions, including Mr. Bass's, without a distance-education partner. UMBC joined Open University to get marketing and administrative help with delivering its master's degree in information systems online, Mr. Bass says. UMBC offered its degree jointly with U.S. Open University. Indiana State University did the same with its bachelor's degree in business administration. With the news of the closing, Maryland looked for other partners, Mr. Bass says. After considering American companies, he got an offer from Open University Worldwide. He says that at first he was leery of working with Open University again. But the services, professionalism, and good will that the British institution showed reassured him. "It really caught us by surprise," he says. The two universities haven't completed the details of the arrangement yet, but Mr. Bass says he hopes to have a formal pact by the beginning of July. His university will continue working with U.S. Open University until the latter institution closes July 31. The closing has already led to a windfall for at least one U.S. Open University partner -- Northampton County Area Community College, in Bethlehem, Pa. A month before the announcement, Northampton had joined a nationwide partnership that U.S. Open University had created to enable community-college students to seek bachelor's degrees after completing their associate degrees. When word got out that Northampton was losing its arrangement with U.S. Open University, several institutions called Northampton to collaborate, says Arthur L. Scott, the college's vice president and provost. Northampton now has degree-completion arrangements with three institutions -- including Drexel University in Philadelphia and Franklin University in Columbus, Ohio -- and has deals pending with four more. Looking back, Mr. Scott says, "This worked to our advantage." Background articles from The Chronicle: United States Open U. to Close After Spending $20-Million (2/15/2002) Banking on Its Reputation, the Open University Starts an Operation in the U.S. (7/23/1999) Easy-to-print version E-mail this article

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