A traveling-wave electroabsorption modulator is used to simultaneously demu
ltiplex and electrically detect a single 10-Gb/s channel from a 20-Gb/s opt
ical time-division multiplexed data stream while transmitting the other cha
nnel in an optically transparent manner. A bit-error-rate penalty of 0.5 dB
and an error floor were observed for the dropped channel due to residual a
bsorption of the other channel. Error-free operation was achieved for the t
ransparent channel.