The experiment utilizes the all-optical wavelength reuse for the realization of a cheaper meter reading approach. We demonstrate the all- optical wavelength reuse approach while exploiting a holding beam and the gain saturation of the erbium doped fiber amplifier (EDFA). A 10 Gb/s data is used to modulate a distributed feedback laser (DFB) and is transmitted downstream over 50 km. The saturated EDFA lowered the downstream data’s extinction ratio (ER) from 9.678 dB to 0.701 dB which is significant for both wavelength reuse and data rewrite for upstream transmission of meter reading as it facilitates the direct reuse of the downstream carrier without the addition of another electrical eraser for meter reading application. The variation of ER and the corresponding Peak to Peak power with EDFA input power for a 1550 nm 10 Gb/s DFB laser was demonstrated by Changing the bias current while maintaining the modulation voltage at 0.5 V allowed the input power into the EDFA to be adjusted from −7.278 dBm to 1.079 dBm. The performance analysis for upstream and downstream transmission was done and the receiver sensitivities determined at BER 10−9. The various eye diagrams were also analyzed for back-to-back (B2B) and 50 km upstream link and downstream link transmissions. This work is crucial for offering an all-optical wavelength reuse option for electrical meter reading application. In addition, the technique is all-optical and can therefore be able to support ultrafast systems with higher formats of modulation while ensuring efficiency in power.