In an optical data transmission system, one channel is removed from a
group of wavelength division multiplexed optical channels and another
channel carrying different information at the same wavelength is inserted
in its place. The process occurs by adding an optical signal whose
electric field is the difference between the electric field of the new
and old channels. The difference calculation takes into account the phase
of the incoming WDM channel and phase of the laser source of the
difference signal. The method has applications in optical transmission
networks as add-drop nodes and optical regenerators, for generation of
high bandwidth optical signals, and for secret optical communications.