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We experimentally demonstrate all-optical packet compression for an RZ payload up to 40 Gb/s and a label at 155 Mb/s, based on a recirculating buffer with one individual optical crosspoint switch. The packet can be flexibly switched, dropped, time slot interchanged up to 9 time slots, and compressed up to 4 packets in one time slot. Back-to-back BER performance of the 4 times compressed packet was...