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A second generation of the Mechanized Loop Testing System MLT-2 has been developed to extend the mechanized loop testing capabilities of the Bell System Automated Repair Service Bureau to small testing regions and to eliminate the need for manual testing systems such as local test desks, which require high craft skill levels. These objectives have been met using a highly distributed processing architecture, state-of-the-art digital signal processing techniques, and new measurement technology. A typical complex, serving five million lines, may involve the use of nearly 3000 loosely coupled microcomputers. MLT-2 can be deployed as either a standalone system or as an enhancement to its predecessor, MLT-1 In the stand-alone mode, MLT-2 provides both the MLT-1 and local test desk capabilities. In the enhancement mode, MLT-2 provides the local test desk functions and serves as a backup to MLT-1.