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In this paper we consider the routing and wavelength assignment problem as well as the placement of wavelength converters in a wavelength routed all-optical network. Using a clustering technique called BI (blocking island), we propose a simple and intelligent RWA (routing and wavelength assignment) algorithm: BI RWA and a converter placement algorithm. These algorithms can be used in arbitrarily connected networks and with some simple modifications, they can also be applied on various networking scenarios. We have evaluated our algorithms through extensive simulations. The simulations are carried out in two parts: static traffic and dynamic traffic. The results demonstrate that our RWA algorithm performs better than other previously proposed algorithms (in the cases we studied).