A novel high spectral efficiency scheme based on 40Gb/s vestigial sideband modulation for all optical label switching is proposed and experimentally demonstrated. After label separation, the power penalties of payload and label are both less than 0.5dB. It is shown that this method can effectively reduce the bandwidth of optical signal. In 40Gb/s optical networks, the 20dB bandwidth of payload combined with label is less than 0.54nm. The influence of the wavelength difference between label and payload is also discussed.

© 2005 Optical Society of America

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