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Summary form only given. Optical performance monitoring (OPM) is an enabling technology for highly transparent and reconfigurable networks. Simple OPM functions such as channel monitoring and discovery are requirements in re-configurable systems. Large transparent regions of the network either created by long transmission distances or transparent pass-through at cross-connect or add-drop nodes create new challenges in terms of both locating and diagnosing faults. OPM devices can provide greater visibility into signal health and enable remote troubleshooting. We examine advanced OPM methods and technologies with potential to enhance fault management. Clear technology requirements are determined by identifying specific applications. For example, a typical fault isolation cycle in which the OPM measurement history is reviewed in response to end terminal performance monitoring (PM) alarms. The required sensitivity for both Q-factor and optical signal to noise ratio (OSNR) monitoring is determined by the need to correlate the OPM readings with the end terminal alarms. Another potential application for OPM is quality of service (QoS) monitoring in systems that utilize all-optical regeneration. In this case dedicated per-channel monitoring is required and therefore integration with the regeneration device is desirable. An OPM device that is derived from an SOA-based wavelength converter and regenerator is described as a promising solution. By focusing on the application, we identify OPM technology needs for enabling new advances in transparent networks.