A novel scheme based on 40Gb/s vestigial sideband modulation for optical payload and label multiplex and separation in all optical label switching (AOLS) networks is firstly proposed and experimentally demonstrated. The payload is combined and separated with wavelength labels by optical filters. The experiment results show that after label separation, the power penalties of payload and label are both very little. The influence of the wavelength difference between label and payload is also discussed. The power penalty of payload can be less than 1dB as long as the wavelength difference is larger than 0.1nm. This scheme highly reduces the channel bandwidth of payload and label and is proposing to be used in future optical Internet.
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