The 302 had been issued since 1937, but starting in 1950, units were replaced with the new 500-series sets, without having served their useful component life.
[1] This was accomplished with a new housing, new number ring and dial plate, and a ringer volume control that could be adjusted by users.
It was introduced to reuse the existing large stock of parts from the pre-WWII era 302 model in the refurbishing plants as those were replaced with 500 series sets, while providing the modern style elements of the 500 telephone.
The use of the old transmitter and receiver avoided elevating sidetone on short loops as was the result with the more efficient G handset when used without equalization circuitry.
The 5302 sets were not manufactured on the normal production lines, but were assembled in the refurbishment shops in the distribution centers and by sub-contractors.