The existence of digital divide among various categories of population in Malaysia will retard the Malaysian government Vision 2020 National Information Technology (IT) Agenda, that by the year 2020 all Malaysians will get access to IT and its application. As younger generations are perceived to be the potential users of IT and the future success of the policy depends on their usage of IT or not, it is important to ensure that they are at least Internet literate.  This paper is to find out if there is a wide gap in the usage of Internet among the younger generations with respect to the geographical location where they live. We also like to be able to recommend a policy that can bridge the digital gap among the urban and rural teenagers in Malaysia that derive from our analysis of the findings.

We had conducted a questionnaire survey on senior high school students in Kelantan, one of the States in Malaysia. By using a case study, we will like to find out the causal effect relationship using Covariance Structural Analysis of the factors that are perceived to encourage the high school students living in urban (core area) and rural (peripheral) area to use Internet service. We will also like to make comparison of what factors would significantly influence the urban and rural teenagers to use Internet service. The findings from this case study can be used (as an initial guideline) for further study on how to effectively diffuse the Internet usage among the younger generation, and bridging the digital gap among the urban and rural teenagers in a developing country, like Malaysia.