Abstract: Described is a decentralized data transmission system and a method of operating the system. A relatively high speed transmission medium connects a number of relatively lower speed terminals in a loop or similar configuration. A central or monitoring station is connected in the transmission medium which includes a memory table containing the listing of the station addresses connected to the transmission loop. The monitoring station operates as a control station for transmitting the address of a first station to be enabled to transmit a message. The addressed station recognizes its address and responds either with a message destined for another station or with a signal that no message is to be sent. At the end of a message, an enabled station sends a special character to notify the monitoring station that the next station in the memory table can be addressed to grant usage of the transmission medium.