The work in this paper addresses all-optical routers for TDM optical networks. The core of
the optical routers is the demultiplexer. In this paper all-optical router is analyzed and
simulated. It is based on a TDM demultiplexer employing Nonlinear Optical Loop Mirror
(NOLM). Expressions are derived for the transmission and reflection coefficients for the loop
mirror employed in the demultiplexer. The effect of various system impairments, on the
performance of the demultiplexer, such normal mode loss, control power, and losses, are
addressed in details. Simulation results were carried out using MATLAB 6.5 software. The
results indicate clearly that the demultiplexer should be designed precisely to achieve the
required router performance.