The purpose of this test mode is to emulate a CSU or NIU. The Test Set will terminate the T1 line, and a loop-up code send from the far-end will cause this test set to enter a loopback state. Conversly, a loop-down code send from the far-end will cause this test set to exit the loopback state.
If you are using ESF, configure the appropriate ESF Loop Code on the Setup menu.