An out-of-band ranging technique is automatically initiated at a customer premises equipment unit when the equipment is installed, when power is restored after a power failure or interruption, upon verification of the equipment, upon reconnection after a disconnection of the equipment or the like. To this end, an out-of-band tone is employed that is automatically transmitted when the customer premises equipment that transmits the TDMA signal is powered ON, or transmitted in response to a specific command generated locally or remotely. Specifically, when ranging is being effected the customer premises equipment generates and transmits the out-of-band ranging tone until a message is received from a remote terminal indicating that the transmission of the ranging tone be terminated. The loop delay being determined is the delay interval between transmission of the termination message and detection that transmission of the ranging tone has terminated. Then, a message is transmitted to the customer premises equipment that contains the ranging delay interval that is to be used in all future transmissions to the remote terminal.