The subscriber network system is generally composed of a feeder network system and a distribution network system. In Japan, the Feeder Distribution System has been applied to a feeder network system and the Free Distribution System has been applied to a distribution network system. These distribution systems have contributed to the establishment of a no waiting-term telephone installation system. Recently, the demand structure for telephone services has changed and demands for non-telephone services have been increasing with progress in the information oriented society. To cope with these trends, the new subscriber network system, which is described in this paper, was developed. The purposes of this system are to maintain effectively no waiting-term telephone installation system and to improve adaptability for non-telephone services. In this system, the pair distribution method is changed, the multiple tee connecting method is abolished and F/D Interfaces are introduced. This system has been put to commercial test since the beginning of 1980.