This thesis investigates advanced optical performance monitoring approaches for future all-optical networks using the synchronous sampling technique. This allows for improved signal quality estimation, fault management and resource allocation through improved control of transmission at the physical layer level. Because of the increased transparency in next generation networks, it is not possible to verify the quality of the signal at each node because of the limited number of optical-electrical-optical conversions, and therefore new non-intrusive mechanisms to achieve signal quality monitoring are needed. The novel synchronous sampling technique can be deployed to estimate the bit error rate, considered an important quality measure, and hence can be utilised to certify service level agreements between operators and customers. This method also has fault identification capabilities by analysing the shapes of the obtained histograms. Each impairment affects the histogram in a specific way, giving it a unique shape that can be used for root cause analysis.