Due to continued growth of the Internet and theintroduction of new broadband services there is aconstant requirement for higher speed communications.It is expected the optical communications systemswill evolve towards higher capacities by increasingindividual line rates. To implement these high-speedoptical networks e.g. operating at individual channelrates above 100 Gb/s, all-optical processingtechniques are investigated. In this work a novelapproach based on two photon absorption nonlinearitywithin a resonance cavity enhanced structure isexplored. The novelty of this work lies in theability...