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JDSU demonstrated a photonic integrated circuit (PIC) that combines a tunable laser and optical modulator, using a technology known as the Integrated Laser Mach Zehnder (ILMZ). The PIC will allow the company to develop smaller, higher performance and more cost-effective tunable solutions that support faster network speeds. Tunable lasers are a key element required for the deployment of agile optical networks (AON). Such networks are deployed by service providers to scale network infrastructures and replace slow, manual operations with simplified, dynamic network solutions that can quickly respond to fluctuating traffic traveling over fiber optic networks. Tunable lasers provide dynamic reconfigurability by allowing network operators to switch from one wavelength to another on demand, easing the cost of purchasing, storing and managing spare devices for wavelength management. The chip includes a widely tunable laser and Mach Zehnder modulator on a single chip that is small enough to fit on the tip of a finger. It will be incorporated into full-band tunable transponders and transceivers within compact packages, such as the 300-PIN small form factor (SFF) and pluggable small form factors (XFP) starting in 2008. This combination enables JDSU to support transmission speeds greater than 11.3 Gigabits per second and is scalable to support 40Gbit/s networks.