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We provide network designs for optical add-drop wavelength-division-multiplexed (OADM) rings that minimize overall network cost, rather than just the number of wavelengths needed. The network cost includes the cost of the transceivers required at the nodes as well as the number of wavelengths. The transceiver cost includes the cost of terminating equipment as well as higher-layer electronic processing equipment, which in practice can dominate over the cost of the number of wavelengths in the network. The networks support dynamic (i.e., time-varying) traffic streams that are at lower rates (e.g., OC-3, 155 Mb/s) than the lightpath capacities (e.g., OC-48, 2.5 Gb/s). A simple OADM ring is the point-to-point ring, where traffic is transported on WDM links optically, but switched through nodes electronically. Although the network is efficient in using link bandwidth, it has high electronic and opto-electronic processing …