SUDAN SDN DESIGNATION AND SUDATEL

C O N F I D E N T I A L KHARTOUM 002815

SIPDIS

SIPDIS

FOR AF/FO AND AF/SPG

E.O. 12958: DECL: 12/06/2016
TAGS: PREL ETTC EFIN US SU
SUBJECT: SUDAN SDN DESIGNATION AND SUDATEL

REF: A. A) KHARTOUM 02729


B. B) STATE 189361

Classified By: P/E Chief E. Whitaker, Reason: Section 1.4 (b) and (d)


1. (C) Regarding the designation of additional Sudanese
companies as "specifically designated nationals" (SDNs),
Embassy Khartoum notes the following information regarding
Sudatel:


A. The potential impact if Sudatel were named as an SDN
would cause complications including but not limited to severe
disruption of Post,s SBU network, in that Post uses the
parastatal Sudatel,s telephonic infrastructure as our
primary connection to Washington for our SBU network.


B. In the event post were unable to use Sudatel's services,
it would be forced to use its satellite (VSAT) connection for
the SBU network. Assuming bandwidth were even available,
this would increase costs significantly. Furthermore, Post
would have only a very low bandwidth Secure Telephone
Unit-based alternate if the VSAT failed. (Note: Post's SC-7
satellite, the normal backup, is, and has been, inoperative
for many months as of this writing. End note.)


C. Post's has contracted with Sudatel to provide local and
national desktop telephone service. A disruption of that
service would mean post could no longer communicate, through
desktop phone service, with the Sudanese population.


D. A new company, CANAR from the UAE, has an independent
fiber link around Khartoum. It is not known to what extent
Canar relies upon Sudatel's infrastructure, such as satellite
uplinks, but we do know that Canar uses Sudatel,s fiber line
between Khartoum and the Port of Sudan.


E. The cell-phone situation is less clear. Post currently
uses Mobitel service, which is partly owned by Sudatel (39
percent),with a Kuwaiti government/private venture owning
the remainder. A possible reaction by Sudatel might be to
work through their interests in Mobitel to limit or disrupt
our current services. While Sudatel and Mobitel represent
the bulk of cell-phone provision in Khartoum; a third
company, Areeba (Bashair-a Syrian company),may be able to
provide limited service.

One additional firm, Canar, (an Emirati company) is trying to
enter the mobile phone market. It is still waiting for the
necessary license from the government.


2. (C) In short, post is heavily reliant upon Sudatel, and
recommends against listing it as an SDN.


3. (C) Issues pertaining to efforts to designate individuals
under targeted sanctions will be discussed in septel.
HUME