India has one of the lowest diffusion rates for broadband among the Brazil, Russia, India, China and South Africa grouping, or BRICS. India has also been very slow in terms of the diffusion of mobile phone services. While it took only five years for mobile phone services to reach a diffusion rate of 75%, after 10 years the diffusion rate of broadband has not even reached 10%. In this context, this study attempts to measure the rate of diffusion of broadband in the country, identifies the factors that determine its adoption at the subscriber level, and discusses the policy challenges for hastening the diffusion rate.