The present invention provides an optical networking device for re-amplifying, re-shaping, and re-timing an optical signal, as well as providing distortion compensation and performance monitoring of the optical signal. The optical networking device includes an all-optical regenerator device for one or more of re-amplifying, re-shaping, and re-timing the optical signal; a distortion compensator device for compensating for distortion associated with the optical signal; and a quality-of-signal monitoring device for measuring the quality of the optical signal. Preferably, the all-optical regenerator device, the distortion compensator device, and the quality-of-signal monitoring device are disposed within a single module. The quality-of-signal monitoring device measures the optical signal subsequent to distortion compensation. Alternatively, the quality-of-signal monitoring device measures the optical signal subsequent to distortion compensation and all-optical regeneration. In various embodiments, the quality-of-signal monitoring device provides feedback to the distortion compensator device, a distortion compensator device disposed along a line system, one or more of an optical amplifier and a distortion compensator device disposed along the line system, and a transmitter device disposed along the line system.