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The design and performance of an all-optical wavelength converter based on a semiconductor optical amplifier (SOA) and a delay interferometer (DI) are presented for 10-Gb/s return-to-zero (RZ) transmission systems with pulsewidths of 25-45 ps. The performance of the wavelength converter is investigated in terms of the operating conditions for the SOA and DI, and the properties of the input signal. The regenerative characteristics of the wavelength converter are also examined for input signals degraded by amplified spontaneous emission noise and residual dispersion. With proper design, the SOA-DI structure provides a high-performance all-optical wavelength converter for 10-Gb/s RZ transmission with practical pulsewidths.