Difficult distances a factor. In the north, many areas are remote and have harsh winters. Northern countries are more accustomed to working in small groups. In Thailand, distance learning is popular because there is no alternative. Thailand has poor infrastructure and few local institutions.
Distance learning is tool to help developing countries to catch up.
It is an enormous good for society, but expensive. Education is a public good so the public should subsidize education. Politicians will say distance learning can help us reach the whole population. Government will likely put in start-up funding, but long term funding must come from elsewhere. Have commercial interests subsidize the public good.