An integrated device of the present invention comprises free-space optics, a bi-directional multiplexor/de-multiplexor, a diffractive light modulator, a beam splitter, an optical performance monitor, and a controller. The free-space optics collimate, transform and image optical signals including a range of component wavelength signals. The bi-directional multiplexor/de-multiplexor de-multiplexes a wavelength division multiplexed signal into the component wavelength signals and multiplexes equalized component wavelength signals into an equalized wavelength division multiplexed signal. The diffractive light modulator selectively equalizes each component wavelength signal. The beam splitter is optically coupled in free-space to the diffractive light modulator for receiving the equalized component wavelength signals and re-directing a representative portion of each of the equalized component wavelength signals. The optical performance monitor receives and detects relative power levels of each representative portion of the equalized component wavelength signals. The controller receives the detected power levels, provides feedback signals and dynamically modulates the diffractive light modulator in response thereto to maintain a desired level of each of the equalized component wavelength signals.