Telecommunication is the transmission of information over significant distances to communicate.rnThe strong development of telecommunication would help to improve efficiency of the economyrnand the countryâ€™s competitiveness which promote economic and social development. Telecom willrnchange the way humans work, play, and live. The International Telecommunications Union (ITU,rn2015) reported that there are more in-use cell phones than there are people on the planet already.rnContinuous technical transformation and information waves of the past century have driven highrngrowth in the telecom industry. However, telecom companies are facing challenges as well asrnopportunities in their business endeavor. Hence, the purpose of this research is to investigate andrnexamine the challenges and opportunities of managing the telecom sector of Ethiopia, withrnparticular focus on ethio telecom. The method employed in the research is qualitative researchrnmethod. Data is collected from both primary and secondary sources using the techniques of indepthrninterview, direct observation, document review and analysis. Accordingly, it is found outrnthat technological advancement, and telecom fraud are among the major challenges andrnopportunities of Ethiopian Telecom Sector. Moreover, it is found out that WTO accession willrncreate new opportunities and as well will impose new challenges to the telecommunications sectorrnof Ethiopia. Hence, ethio telecom and the Government shall create strategic alliance andrnpartnership with high technology companies around the World, implement a fraud managementrnsystem that detect frauds before it happen and damage occurs, implement appropriate policies andrnstrategies to avoid the risks and grasp the opportunities of joining WTO, and establish Researchrnand Development Center of Telecom for sustained development of the Telecom Industry ofrnEthiopia.rnKey Words: challenges and opportunities of telecom sector