In telecommunications terminology, any telecommunications equipment sold or leased by the carrier to the customer that is installed at the customer's location.
Customer premises equipment (CPE) is typically installed to originate, route, or terminate telecommunications between the customer premises and the central office (CO) of the carrier or telco from which the service is leased.
Some examples of customer premises equipment include telephones, modems, CSU/DSUs (Channel Service Unit/Data Service Units), Private Branch Exchanges (PBXs), and so on. Generally the telecommunications service provider is responsible for the configuration and monitoring of the CPE.
For example, when installing a CSU/DSU as a termination for a T1 line, the configuration of the CSU/DSU is likely to have been done previously by the service provider. Simple Network Management Protocol (SNMP) monitoring features and loopback monitoring techniques enable the service provider to determine, from its central office, whether the remotely installed equipment is functioning correctly.