We report on the complete experimental evaluation of a GaInNAs/GaAs (dilute nitride) semiconductor optical amplifier that operates at 1.3 μm and exhibits 28 dB gain and a gain recovery time of 100 ps. Successful wavelength conversion operation is demonstrated using pseudorandom bit sequence 27-1 non-return-to-zero bit streams at 5 and 10 Gb/s, yielding error-free performance and showing feasibility for implementation in various signal processing functionalities. The operational credentials of the device are analyzed in various operational regimes, while its nonlinear performance is examined in terms of four-wave mixing. Moreover, characterization results reveal enhanced temperature stability with almost no gain variation around the 1320 nm region for a temperature range from 20°C to 50°C. The operational characteristics of the device, along with the cost and energy benefits of dilute nitride technology, make it very attractive for application in optical access networks and dense photonic integrated circuits.