We report the first demonstration of all-optical label swapping with wavelength conversion and subcarrier multiplexed addressing for WDR IP. This demonstration utilizes a module which is based on cascaded semiconductor optical amplifier wavelength converters that perform the functions of label removal, label rewriting, payload 2R regeneration and double sideband subcarrier label regeneration. Replacement of double-sideband subcarrier labels on a hop-by-hop basis addresses the problem of dispersion induced fading in a multihop fiber network. A direct detection subcarrier receiver is used to recover the label. Switching over four wavelengths covering 16 nn is demonstrated with noninverting wavelength conversion of 2.5-Gb/s payloads and burst mode recovery of 10-Mb/s labels. BER measurements of better than 10/sup -9/ for the wavelength-converted payload and rewritten labels at all wavelengths are presented.