A high spectral efficiency scheme for all optical label switching (AOLS) network is introduced. The vestigial sideband (VSB) payload with wavelength labeling is proposed in beyond 40Gb/s AOLS networks. Two different label wavelength schemes are considered. The minimum 20dB channel bandwidth of payload and label is 0.40nm in 43Gb/s systems which confirm the payload power penalty less than 1dB at the receiver.