Abstract: Optical time-division multiplexing (OTDM) has been considered as an alternative to wavelength-division multiplexing for future networks operating in excess of 10 Gb/s. Recent advances in device technologies have opened new opportunities for implementing OTDM in very high-speed transmission as well as networking. The potentially multi-terahertz bandwidth made available with the advent of optical fibers can be exploited by eliminating the bottleneck caused by electro-optic conversion. This paper presents an overview of current OTDM networks and their supporting technologies. A novel network architecture is introduced aimed at offering both ultra-high speed and maximum parallelism for future terabit data communications. Each node of the network is composed of several components including low-loss photonic switches, a switch controller, an optical data processing unit, and a user interface. We discuss the performance of each component, and obtain an optimal structure for ultra-fast optical networks.