The nonlinear optical loop mirror is shown to be capable of demultiple
xing 20 Gbit/s pulses from a continuous 40 Gbit/s data stream. Bit err
or rate measurements are presented for a demultiplexed 10 Gbit/s chann
el, and the sensitivity of the error rate to timing jitter between the
signal and clock pulses is examined. Bit-rate flexible demultiplexing
can be achieved.