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An optical waveguide doped with a rare earth element (12) is pumped (26, 28) so that an input optical signal ( lambda (w1)) is amplified as the input optical signal travels through the optical waveguide. The optical waveguide is provided with at least one light ( lambda (w2), lambda (w5)) which, together with the input optical signal, causes four wave mixing (FWM) to occur in the optical waveguide. The FWM causes a converted optical signal to be produced in the optical waveguide. The converted optical signal has a wavelength different from the input optical signal. If the input signal is modulated by a transmission signal, then the converted optical signal will also be modulated by the transmission signal. The optical waveguide can be, for example, an erbium doped optical fiber operating as an erbium doped fiber amplifier (EDFA). Therefore, an EDFA can be used for both amplification and wavelength conversion.