A system and method are provided for special signaling with customer premises equipment. The system includes loop termination equipment coupled to a local loop and comprising a signal generator. The system also includes customer premises equipment coupled to the local loop. The customer premises equipment and loop termination equipment are operable to communicate across a communication link established on the local loop. The loop termination equipment is further operable to control characteristics of a signal generated by the signal generator and to provide the signal to the customer premises equipment as special signaling where the signal has a frequency that does not substantially interfere with voice traffic on the local loop. The special signaling can be used to implement enhanced service to the customer premises including busy signal, queued data request processing, push data and telephony services.