Optical signal regeneration is required for implementing transparent optical telecommunication networks. Critical nonlinear optical processing functions which must be improved for full 3R signal regeneration are optical clock recovery and clocked decision. A novel device type is presented, which can be used for both clock recovery and for decision unit. It is a laser, which is modulated by controlling the reflectivity of the laser mirrors. The concept of dispersive mirror modulation and the function of the developed multi-section laser are described. The required basic functions for signal processing are verified in experiments. This includes generation of optical data patterns by mirror modulation, optical control of mirrors at 5 Gb/s and demonstration of digital bistable switching characteristics. Self-pulsations are stimulated and optical oscillators with tunable frequency are realized. The devices are applied for all-optical clock recovery of 10 Gb/s data streams in a system environment. Clock recovery, decision, and optical amplifier all have a very similar device structure and operate with AR coated facets. Integrated photonic signal processing circuits can be built up with these elements.