compare costs because of the differing variables among the technologies. Currently there is not a large body of valid data concerning the costs of various systems (Jefferson & Moore, 1990). One major question asked by administrators, school boards, and policymakers is, How much does distance education cost? Distance education systems involve cost commitments that are not easily modified. The purchases must be used for a number of years. Those responsible for making these large capital investments should have reliable evaluation data available to make sensible deciSions. There are few studies that specify detailed costs for the three transmission methods. Current cost studies are general in nature. These studies do not specifically compare transmission costs by specific distances. Few studies compare compressed and full motion video costs. There is abundant technical information regarding the specific technologies, but it is not written in the context of distance education. It is difficult to find in one location, complete, nontechnical information listing major cost variables affecting each transmission system and classroom equipment. Educators desiring to execute distance education systems in Iowa are unfamiliar with sources to aid in planning. Educators lack information on expert sources to supply cost and installation detailS. A study detailing specific variables contributing to the total costs of creating a distance education system would be helpful to distance educator planners. Purpose of the Study This study determined the cost of creating a distance education system using narrowcast technologies. The study presented cost comparisons for three types of technology. Two of the 9 technologies deliver two-way, full motion video and two-way audio: (a) microwave and (b) fiber optics. The third technology, compressed video, delivers two-way audio and two-way video, but in compressed motion. links connecting hypothetical sites of varying distances were created. Costs were collected from point A to point B for each set, applying each transmission method. The major cost considerations of each of the transmission methods were identified. Lease costs for the transmiSSions were also collected. The costs were then compared. Second, this study described costs of equipment and installation for the distance education classroom. An interactive classroom was designed. This design detailed the equipment needs for the origination teaching site. lists of equipment and prices for the classroom were supplied for both state-of-the-art equipment and more basic equipment. This paper was a cost comparison of three narrowcast, duplex audio and video technologies. It was not a cost-effectiveness study of the distance education technologies. Research Questions This research explored and analyzed the following questions: (1) What does it cost to put into place a point-to-point, distance education system using: microwave, fiber, and compressed video? (2) What are the major cost considerations for the three transmission methods? (3) Is it ...