Abstract: A growable packet switching arrangement where the number, S, of distribution network stages is reduced by bounding S according to log.sub.2 (max(L,N))<S+1<[log.sub.2 (max(L,N))].sup.2 /2. Since the distribution network is made up of stages of opto-electronic nodes and interconnecting free-space optical link stages, there is no need to transmit input signals using different frequencies. Input signals are instead distinguished based on their spatial location. Accordingly, there is no receiver tunability restriction on L, the number of inputs. Further, because signals are regenerated at each network stage and there is only a 3:1 power loss (approximate) at a given stage, high signal/noise ratios and corresponding low bit error rates are achieved.