This invention provides a method for commissioning an optical network using internal Automatic Spontaneous Emission (ASE) light inherently present in the optical network as a light source (the ASE light source) for measuring losses inside and between nodes in the network. A modular segmented approach is adopted and the network is commissioned segment by segment. The method uses techniques for the correction of the Optical Signal to Noise Ratio induced error as well as the Spectral Filtering Error during the loss computation required for adjusting the gains of the amplifiers at each network node to an appropriate value. Since the method does not require an external laser source that needs to be moved manually from node to node, it greatly reduces the commissioning time. Since it uses only the existing components of the network nodes it also leads to a significant saving in cost.