Information and communication Technology (ICT) is bringing the big world into arns mall place, by allowing eas y information flow, knowledge transfer and therebyrnfa cilitating busine s s relations and social interactions.rnICT,if not has more importance than it has in developed countries ,it isequallyrnneeded in d eveloping countries to facilitate economic developme nt and alle viaternpoverty.To realize the mentioned benefits telecommunication industry, which isrnthe main integral part of ICT. should be developed and made efficient. To bringrneffici ency in the te lecommunication sector, private ownership and competitivernmarket on the s ector are becoming the better choice than government monopoly.rnSince the last twe nty years, as a result of technological advance ment on telecomrnindus try, which was cons idered as a natural monopoly for its huge investmentrnrequire me nt and security reasons, is being opened to private owners hip andrncompetition. Liberalization and privatization are taking place worldwide. InrnEthiopia, telecommunication s ervice was started as early as 100 years ago.rnHowe ver, the de velopment on the sector in 100 years was minimal compared tornother sub Saharan African countries . Telecommunication infrastructure is notrnexpanded to most parts of the country. The state owned enterprise, EthiopianrnTelecommunications Corporation (ETC),whic hcurrently providesrntelecommunications is being blamed for its inefficiency and low te le-density in therncountry. Besides , the digital gap between the rural population and remote areasrnon one hand and urban population and nearby cities on the other is also wide.rnDespite the green light give n by the available investment lay domestic privaternsector in the te lecom bus iness, governme nt expressed its intention to continue itsrnmonopoly. The current regulatory body is weak and not playing its regulatoryrnrole to facilitate a competitive e nvironment.rnThe writer recomme nds that a competitive environme nt should be created for therntelecommunication sector of Ethiopia, through liberalization. Amongrntelecommunications service s , a t least mobile telephony, internet service and otherrnvalue-added s e rvice s should be allowed for private parties, to provide the s ame inrncompetition with the incumbent, ETC.