Embodiments of present invention provide a digital dispersion compensation module. The digital dispersion compensation module includes a multi-port optical circulator and a plurality of dispersion compensation units connected to the multi-port optical circulator, wherein at least one of the plurality of dispersion compensation units includes a first and a second reflectively terminated element and an optical switch being capable of selectively connecting to one of the first and second reflectively terminated elements, and wherein the at least one of the plurality of dispersion compensation units is adapted to provide a substantially zero dispersion to an optical signal, coming from the multi-port optical circulator, when the optical switch connects to the first reflectively terminated element and is adapted to provide a non-zero dispersion to the optical signal when the optical switch connects to the second reflectively terminated element.