The LP7 (also referred to as "SIMRAD" and "laserpainter") was likely a cut gadget which can be found within the Battlefield 2 game files. It seems to be similar to binoculars in design, but as it is referred to as "laserpainter" several times, was likely used in a similar method to the binoculars found in Battlefield: Bad Company. According to the game files, the LP7 was to be issued to the specops kit, as the specops kit's file states, rem ObjectTemplate.addTemplate SIMRAD, but the LP7 itself does not make any appearance in-game, as the rem at the beginning of a sentence makes it invalid. It's usage is confirmed by the statement in the AI file for the kits, which states rem Attack unit with laser targetting and scope, even though no such laser targeting mechanism exists in-game. Its intention was to transmit the coordinates of the target to friendly aircraft.
It was an almost entirely complete device, with its own tutorial pop-up (including voice-over), icons, textures, and animations, hinting that it was removed just before release.
The LP7 in-game, acquired via file-modding
The LP7's reticle (the red dot was created by holding the left mouse button)