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This study compares the relative costs and effectiveness of online learning with traditional face-to-face teaching methods in the vocational education and training (VET) sector. It does not aim to provide a definitive answer to whether online learning is cost effective or not because the range of different types and institutional settings in which online delivery takes place makes a definitive answer impossible. The study is based on six case studies of two different types of online learning. One mode of online learning is the mixed-mode delivery using the computer and the Internet in a classroom setting. The other mode is the use of online delivery for distance learning for students in remote locations. The six case studies, from New South Wales (NSW), Victoria (VIC) and South Australia (SA) and from a variety of institutional settings in the VET sector, offer different contexts for identifying cost effective outcomes. This publication contains the first part of the report, describing the scope of the study, the methodology used and the main findings and including a literature review, as well as the second part of the report comprising a description of the case studies.