To provide very high end-to-end bandwidth, all-optical networks need to maintain the transmitted information in the optical domain throughout the network. Through packet switching, this bandwidth can then be flexibly shared among a large number of users according to the demands of their applications. In this process users need to share the various optical communication-handling network resources, such as wavelengths, receivers and transmitters. Extant packet switching solutions, based on electronic buffering and processing, are not appropriate for the optical environment, as, due to the relatively slower electronic rates, their use leads to the `electronic performance bottleneck.' In this paper we present an `all-optical' ring network architecture, PIPELINE, which exploits both WDM and subcarrier signalling techniques. WDM is used to provide separate channels (one for each node) to exploit the fiber bandwidth, but keeping the node interface at electronic rates. Subcarrier signalling allows for outband packet signalling which does not require the payload O/E conversion at each intermediate node. A simple access protocol to avoid receiver contention is also proposed and studied to determine its fairness. Physical implementation issues and network scalability, i.e., maximum number of nodes, are carefully evaluated to estimate the ultimate potential of this and similar network structures.