An optical module is provided for performing a prescribed function such as dispersion compensation, for example. The optical module is to be integrated between stages of a multi-stage rare-earth doped optical amplifier. The module includes an input port for receiving optical energy from one stage of the rare-earth doped optical amplifier and a rare-earth doped planar waveguide coupled to the input port. An optically lossy, passive element is provided for performing the prescribed function. The optically lossy, passive element is coupled to the planar waveguide for receiving optical energy therefrom. An output port is coupled to the optically lossy, passive element for providing optical energy to another stage of the rare-earth doped optical amplifier. The rare-earth doped planar waveguide has a first unsaturated absorption spectrum and the rare-earth doped optical amplifier has a second unsaturated absorption spectrum such that the ratio of the first to the second absorption spectrum is substantially wavelength independent within the spectral range of incoming and outgoing optical energy. The rare-earth doped planar waveguide has a length determined at least in part from a value of optical loss in the passive element and characteristics of the rare-earth doped optical amplifier.