This paper evaluates the Effect of telecommunications services on urban household poverty reduction in Ethiopia in Debre Birhan. In this study, we selected a total sample of 202 households using a systematic sampling technique. The data collection instrument was face-to-face interviews using structured closed and open-ended questionnaires. The study applied Multidimensional Poverty Index to set a poverty line. This study used a binary logit model and descriptive statistics to investigate the effect of telecommunications services on urban household poverty reduction. 21.37 percent of telecom service users (both internet and mobile) are poor, and 78.63 percent of telecom service users in the study area were non-poor. The result of the econometric estimation shows telecom service positively and significantly impacts household poverty in a favorable direction; the marginal effect suggests that households with access to the internet and mobile phones decrease the likelihood of being MPI poor by 25.6percent. In addition, other covariates like household head education level, household head age, credit access, and household income were found to reduce household poverty. Thus, the study showed that increasing access to telecom services is crucial in reducing household poverty. Therefore, any intervention in providing more telecom services like the internet and access to cell phones and improving the service quality will induce households to engage in activities that will enhance householdsâ€™ wellbeing. rnKeywords: Poverty, Multidimensional Poverty Index, Logistic Regression, Telecommunications Paper type Research paper