Telecommuniction means have assumed vital importance in the world nowadays. Telecommunication services in Sudan had witnessed deterioration during the last two decades of this century, which is characterized by great advances in this field. Telecommunications networks and telephone exchanges had collapsed due to lack of maintenance.
After the State had become convinced of the failure of the public sector in managing and developing this vital sector, the Sudanese Telecommunications Company (Sudatel) was set up as a public share-holding company with the aim of extending telecommunication services and modernizing equipment and networks. All sites covered by the old microwave network and all those in the National Capital have been taken over by the company. The state owns 68.8% of the paid capital of the company, while the investment and development tasks have gone to the private sector.

Sudatel Company inherited a deteriorated telecommunications network in the country when it began operations in 1994. The Company started by executing an emergency plan for short-term rehabilitation work for some existing networks at a number of areas in Khartoum State. This led to increasing the rates of operation in a number of telephone exchanges. The rates of operation increased to 97% at Khartoum South exchange, Imtedad exchange 84%, Shambat exchange 97%, Khartoum Central exchange 99% and Mahdiya exchange 99%.
Khartoum North and Omdurman exchanges did not undergo maintenance work at that time because they were found completely deteriorated.

The Company also adopted a plan of action to introduce new modern systems coping with the advances in the telecommunications field. In this context Sudatel Company concluded a number of contracts towards that end:-

1. A contract was signed on 30/1/1994 with the French Alcatel Company for establishment of a new satellite station with a capacity of 512 circuits, compared to the capacity of the old station of only 49 circuits. The new station was set up and entered into operation on 4/4/1995 against 4,445,206 dollars.
2. A contract was signed in February 1994 with the Italian Alcatel Compnay for importation and installation of a new exchange for international telecommunications in Khartoum, with a capacity of 2040 circuits against 1442891. This is compared to the old exchange, whose capacity had been 210 circuits only. The installation work of the exchange was completed and entered into service on 1/4/1995. This led to a great leap in international telecommunications thanks to the most advanced technology used, which is the digital technology.
3. A contract was signed in 1994 with the German Siemens Company for the provision and installation of an optic cables network for linking all exchanges operating in the Sudanese federal capital of Khartoum with each other on one hand and with the satellite ground station at Omharaz area on the other. The value of the contract was 2342104 dollars. The network was completed and entered the service in March 1995.
4. A contract was signed with the German Siemens Company in October 1994 for importation, installation and operation of Khartoum Central Exchange with a capacity of 60,000 telephone lines, which can be expanded to 100,000 line in the future, against $2,759,622. The exchange entered into service in March 1995.
5. A contract was signed with the German Siemens Company in November 1994 for importation and installation of 16 exchanges with a total capacity of 109,000 telephone lines for 16 towns of the Sudan. The total cost of the project was $11,688,311 to be paid equally by the two companies. The ability of the Sudanese Company to obtain finance from an international institution represents a major shift in foreign relations. It would also boost confidence of the international corporations in the Sudanese telecommunications Company and its capabilities. Implementation of a total of 109,000 telephone lines at one time also represents a great boost to the telecommunications network in the Sudan (75,000 lines only in the past).
6. A contract was concluded with the American STS Company in 1994 for establishing 36 new ground satellite stations in 36 Sudanese towns besides a central control station against a sum of $13,269,071. Work in implementing the network of ground satellite stations is currently underway. It will provide means for carrying radio and TV broadcast besides telephones to and from the various states of the country as well as linking them with the central network, thus enabling them to make international calls at the required speed.
7. A contract was signed with the Korean Daewoo Company in December 1994 for the supply of cables for the network of new Omdurman and Khartoum North exchanges and rehabilitation of that of Khartoum South and Imtedad exchanges, against a sum of $4,043,000. the cables arrived in the country within four months as of the date of the signing of the contract.
8. The new exchanges of Al-Obeid and Atbara towns were launched on 10/7/1994 and November 1994 respectively. The capacity of Al-Obeid exchange was initially 2,000 lines. It was increased to 4,000 lines in November 1994. Atbara exchange has a capacity of 1,600 lines. Both exchanges are operating now efficiently.
9. Duiem town exchange was opened on 24/1/1995, with a capacity of 600 lines.
10. A contract was signed in January 1995 with Alcatel Company for implementing the mobile telephone project in Khartoum State for providing 10,000 lines for mobile telephones, which can be increased to 20,000 lines in the future. The cost of the project was $4,551,234.