RACE Project 1036 is developing the technology for a broadband customer premises network (CPN) using wavelength and time division multiplexing (WTDM). Features include close wavelength spacing (4 nm in the 1500 nm band), high-speed time multiplexing (2.5 Gbit/s, STM-16), and a layered control protocol. An initial demonstrator with two wavelengths carrying TV signals at 155 Mbit/s was exhibited in the autumn of 1990 and is now evolving into the final demonstrator due at the end of 1992 which will show 16 wavelengths and a 2.5 Gbit/s multiplex of HDTV, TV, and sound. The paper describes the devices made in the Project, the demonstrators, and the performance results achieved so far.