A fiber-optic networking system that can survive a break in the fiber and restore full connectivity to all nodes in the network. The network can detect the presence of a cut in the fiber, locate the cut, recover from the cut, and restore the communication capacity that was available before the cut. The network is also capable of automatically determining the existence and identity of the nodes in the network, the distance of the node from the headend, and the executing procedures to handle both planned and unplanned (i.e., during a fault) removal of nodes from the network.