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The paper describes multi-layer traffic engineering and signaling technologies in photonic-GMPLS-router networks. Multi-layer traffic engineering, which yields the dynamic cooperation of IP and photonic layers for providing IP services cost-effectively, is described. To realize multi-layer traffic engineering, we propose an OSPF extension that advertises both the number of total wavelengths and the number of unused wavelengths and an RSVP-TE extension that minimizes the number of wavelength conversions needed. In addition, the paper presents a heuristic-based multi-layer topology design scheme that uses IP traffic measurements in a generalized multiprotocol label switch (GMPLS). Our design scheme yields the optical label switch path (OLSP) network topology, i.e. OLSP placement, that minimizes network cost, in response to fluctuations in IP traffic demand. In other words, the OLSP network topology is dynamically reconfigured to match IP traffic demand. Networks are reconfigured by the proposed scheme so as to utilize the network resources in the most cost-effective manner.