Raychem Corp’s Menlo Park, California-based Raynet Corp, which has a $100m contract for its LOC-2 Fibre-in-the-Loop system for delivering fibre optic phone service right to subscribers in eastern Germany, has also won a three-year purchase agreement with BellSouth Corp’s BellSouth Telecommunications for the system; deployment of the LOC-2 system is expected to start in early 1993 with a series of first office applications; the system features a point-to-multipoint architecture, in which hundreds of telephone signals are transmitted or multiplexed out over a few fibre optic cables into the local loop network; the signal is then passively split and delivered to optical network units located near the customer’s premises; another company was awarded a BellSouth contract for similar equipment, but Raynet did not name its competitor.