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A new channel assignment scheme called a frame addressing system is proposed in this paper to realize an efficient telephone subscriber carrier system by means of PCM loop having a simplified switching capability at each subscriber. In the frame addressing system, a speech signal time slot is assigned by sending a bit for each subscriber at the beginning of each transmission frame. This results in an improvement of efficiency by a TASI-like effect in addition to efficiency by switching. The principle and an example of a practical circuit are described. Characteristics of the system are analyzed and a design example is described.