The rapid evolution of telecommunication, World Wide Web, and computing technologies continues to shape the businesses around the globe. In this rapidly changing technological environment, a country"s broadband Internet readiness has become a significant factor of the global competitiveness of a nation. Using a modified Porter"s diamond model, this study compares broadband Internet development in Pakistan and India and investigates various factors that contributed to the different degrees of broadband Internet development in the two countries. The study finds that the diffusion of broadband Internet does contribute to the global competitiveness of a nation. The study reports findings from the first comparative study of Pakistan and India carried out in the area of broadband Internet competitive advantage.