A compact all-fibre design, comprising two identical Bragg gratings wr
itten on to the arms of a fused fibre Mach-Zehnder interferometer, has
been used to produce a low-loss wavelength drop and insert filter for
wavelength division multiplexing/ demultiplexing applications in opti
cal fibre communication systems. A prototype device has been produced
which can multiplex/dimultiplex a signal centred on 1558.7nm with any
other wavelength in the 1550nm transmission window with a maximum inse
rtion loss of 1.0dB.