We propose a time- and channel-selective optical data exchange between wavelength-division-multiplexed (WDM) channels by exploiting the cascaded second-order parametric nonlinear interactions in a periodically poled lithium niobate (PPLN) waveguide. It is observed that the PPLN-based optical data exchange provides nearly symmetric performance with signals located in the short- and long-wavelength ranges. Optical data exchange between two WDM channels is realized with a power penalty of less than 1.5 dB at 10 Gbit/s and 3 dB at 40 Gbit/s at a bit-error rate of . We demonstrate the 40 Gbit/s channel-selective optical data exchange between four WDM channels with a power penalty of .
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