The digital divide between countries is a critical phenomenon that places developing countries in a disadvantaged position economically, politically, and socially. While the phenomenon has drawn the attention of many, a theoretical account using empirical test of primary data is lacking. Building on a three-level digital divide framework, this study tested the effect of country development index on three levels of the digital divide. Survey data from university students in Cambodia, Iran, and South Korea show that country development index has a significant effect on all three levels of the digital divide. While the countries differ on the hedonic values of IT use, there is no significant difference in the utilitarian values of IT use. Korea, being a developed country also differs significantly from Cambodia and Iran in the digital access divide, digital capability divide, and digital usage divide. The results have important implications for companies as well as government policy-making and intervention programs.