Abstract: The present invention provides a modulation format adjusting optical transponder for receiving an incident optical signal of a first modulation format and outputting an optical signal having a different modulation format. The transponder includes an optical-to-electrical conversion element configured to receive an information-bearing optical signal having a first modulation format and output an electrical signal corresponding to information from the incident optical signal. The transponder includes a laser for outputting an optical carrier signal at a selected wavelength and a modulator communicating with the optical-to-electrical conversion element and with the laser. The modulator places the information from the incident optical signal onto the optical signal output by the laser, creating a modulated optical output signal having a second modulation format different from the first modulation format.