We demonstrate an all-optical scheme for the simultaneous drop and wavelength conversion of bursts of data from a continuous stream of differential phase-shift keyed (DPSK) signals. This function is obtained in a single semiconductor optical amplifier Mach–Zehnder interferometer thanks to proper nonlinear interaction of the data stream and an optical gate signal at different wavelength. Fast switching-time enabling wavelength shifting operation on continuous DPSK data stream at 10 and without any bit loss is reported. Corresponding measured power penalties are negligible at and about 1.7 dB at .
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