Government will likely put in start-up funding, but long term funding must come from elsewhere. Have commercial interests subsidize the public good. Distance learning with current technology is isolating, primitive and experimental. There is little evidence that it is effective. We must not only expand technology, but also rethink technology and how we do things.
Effectiveness depends on target group.
Video may be perfect for a motivated adult group with limited means. The market is not homogeneous, but diverse as to means, expertise, and desire. Half of student load is in 25 huge survey courses. Could easily be undercut by industry. Hard to prove that those in distance learning programs are learning as much as traditional classes.