A label swapping scheme of an optical labeled signal with differential phase shift keying(DPSK) for label at 2.5 Gb/s and pulse position modulation(PPM) for payload at 40 Gb/s is demonstrated by simulation.Power penalties of ～1.8 and ～0.8 dB are achieved for both the payload and label over 80-km single mode fiber(SMF) transmission.This labeling scheme allows the use of four-wave mixing(FWM) in semiconductor optical amplifier(SOA) to perform label erasure,with advantages of transparence for bit r
