The need for greater transmission capacity through optical fiber has been m
et so far by the wide scale deployment of wavelength division multiplexing
(WDM). Still, to manage and access this bandwidth, the next growth challeng
e will most likely emerge at the switching nodes, where processing is neede
d to groom the ever diverse and changing traffic. The eventual goal is to r
educe the amount of complex electronics, and thus, the cost, by migrating t
o the all-optical network, where data is switched and routed transparently
in optical form, with a minimum amount of electronic processing. As a first
step in this direction, optical cross-connects (OXCs) and optical add-drop
multiplexers (OADMs) are already being introduced commercially to perform
basic routing and switching functions for protection and allocation. Eventu
ally, we envision an optical packet switched network layer that features: i
i) bit rate transparency, iii) protocol transparency, and (iii) fast switch
ing with fine granularity. With these characteristics, an optical packet sw
itched network layer can be a high performance and cost competitive solutio
n for future networks. Several networking functions will be needed to deplo
y the all-optical transparent layer. Wavelength conversion will allow the r
euse of wavelengths in the network and may help alleviate contentions. Opti
cal synchronization and optical packet header processing (for routing and s
witching) will increase throughput and reduce latency. Last, but not least,
all the above solutions will need to be bit rate and modulation format ind
ependent (or at least be able to handle a wide range of bit rates and modul
ation formats).