Abstract: A method and apparatus for establishing an intelligent demarcation between facility and terminal segments of a synchronous optical network. Network management information contained with the overhead structure of the synchronous optical network signal is extracted and manipulated in accordance with a predetermined user specification; overhead data may be translated, terminated, or passed unaltered as required. Overhead processing towards the facility and terminal segments need not be symmetrical. Payload information is passed unaltered although future provisions for encrypting payload data exist. Full performance monitoring is supported along with a built-in-test and diagnostic capability. The device may be both locally and remotely controlled and monitored. Remote control is implemented via the overhead information contained within the synchronous optical network signal.