Optical fibre communication is very much preferred for the communication of signals over bandwidth of a gigabits per second over distances more than hundreds of kilometres. For a long period of time optical fibre communication has been about how to provide higher bandwidths with reduced cost per bit transmitted. However, this trend has changed from optical transmission to optical networking. By exploiting the wavelength division multiplexing (WDM) technology, optical networks have expanded from backbone networks to metropolitan and access networks to deliver high bandwidth services to the users in a seamless fashion with reduced cost. The ultimate evolution of the optical access network involves fibre-to-the-home (FTTH) technologies, which can potentially offer every kind of information and communication related services. Out of all FTTH technologies, the passive optical network (PON) can potentially offer the most cost-effective solution as the optical network is shared between a number of end users. PONs have significant advantage over competing access technologies as the fibre infrastructure can be effectively future-proofed for upgrades. A number of demonstrations have been carried out for the cost effective deployment of the PONs. However, as these networks evolve, advanced functionalities have to be added over the existing end to end transmissions between the service providers and end users.

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