This empirical study aims to develop the performance based higher education service quality model (PHEd-model), which is a comprehensive approach compared to the HEdPERF model. The scale reliability for 67-item instrument is confirmed using the Cronbach’s Alpha. The principle component analysis followed by a varimax method is used to extract the factor loadings. Based on the overall loaded items, eight dimensions are found, namely, dependability, effectiveness, capability, efficiency, competencies, assurance, unusual situation management, and semester-syllabus grading (SSG). The chi-square test, relative likelihood ratio test, and RMSEA, CFI and GFI tests are used using the AMOS 5 in order to ensure the validity and the strength of data to fit in the model. The results are satisfactory. This study underlines some critical dimensions and related factors in which the tertiary institutions should concentrate their efforts. Moreover, this study shows the guidelines that are worthy for measuring and ensuring the education quality in open and distance learning universities. Although the empirical results for the PHEd model are significant, a comparative study among PHEd, HEdPERF and SERVPERF can produce relative strengths of these models.