We explore design principles for next-generation optical wide-area networks, employing wavelength-division multiplexing (WDM) and targeted to nationwide coverage. This optical network exploits wavelength multiplexers and optical switches in routing nodes, so that an arbitrary virtual topology may be embedded on a given physical fiber network. The virtual topology, which is used as a packet-switched network and which consists of a set of all-optical "lightpaths", is set up to exploit the relative strengths of both optics and electronics-viz. packets of information are carried by the virtual topology "as far as possible" in the optical domain, but packet forwarding from lightpath to lightpath is performed via electronic switching, whenever required. We formulate the virtual topology design problem as an optimization problem with one of two possible objective functions: (1) for a given traffic matrix, minimize the network-wide average packet delay (corresponding to a solution for present traffic demands), or (2) maximize the scale factor by which the traffic matrix can be scaled up (to provide the maximum capacity upgrade for future traffic demands). Since simpler versions of this problem have been shown to be NP-hard, we resort to heuristic approaches. Specifically, we employ an iterative approach which combines "simulated annealing" (to search for a good virtual topology) and "flow deviation" (to optimally route the traffic-and possibly bifurcate its components-on the virtual topology). We do not consider the number of available wavelengths to be a constraint, i.e., we ignore the routing of lightpaths and wavelength assignment for these lightpaths. We illustrate our approaches by employing experimental traffic statistics collected from NSFNET.