To increase the transmission capacity of future communication networks is b
ecoming very critical. This task can only be accomplished by taking advanta
ge of optical networks where multiplexing techniques such as Dense Waveleng
th Division Multiplexing (DWDM) and Optical Time Division Multiplexing (OTD
M) are employed. To avoid electronic bottlenecks a whole new generation of
ultrafast devices is needed. To fulfill these needs a new class of all opti
cal devices has been proposed and developed. By taking advantage of the non
linear dynamics in semiconductor optical amplifiers in combination with the
fiber interferometers a new generation of ultrafast all-optical demultiple
xers and wavelength converters has been demonstrated. Other switching techn
ologies are also promising for the future. The latest technologies in the a
rea of micro-machining have created very attractive low cost MEMS. Recently
announced use of bubble technology for all-optical switching might also le
ad to the development of next generation large scale switching fabrics. Thi
s paper is an overview of the recent development in these areas.