Abstract: Disclosed herein is a transponder comprising a transmitter and a receiver. The transponder further comprises a receiver input amplifier, a bypass line, and a control unit configured for determining the performance of the transponder in relation to an OSNR related parameter, by controlling the transponder to generate a noise signal to be received by the receiver. The receiver input amplifier is operated to thereby cause ASE in the receiver input amplifier to facilitate the determination. A test signal is generated at the transmitter Said noise signal and said test signal, and/or one or more respective replicas thereof, are superimposed to form a combined signal to be received by said receiver to further facilitate determination of said performance related parameter based on said combined signal, wherein for generating said combined signal, said test signal is fed from the transmitter to the receiver by means of said bypass line.