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The authors present a review of all-optical signal-processing technologies based on /spl chi//sup (2)/ nonlinear interactions in guided-wave devices and their applications for telecommunication. In this study, the main focus is on three-wave interactions in annealed proton-exchanged periodically poled lithium niobate waveguides due to their suitable properties with respect to nonlinear mixing efficiency, propagation loss, and ease of fabrication. These devices allow the implementation of advanced all-optical signal-processing functions for next-generation networks with signal bandwidths beyond 1 THz. In this paper, integrated structures that will allow for improvements of current signal-processing functions as well as the implementation of novel device concepts are also presented.