Recently, it has been recognized that for the Internet to evolve, it is important that network operators be able to virtualize their physical infrastructure into multiple parallel virtual networks, which can support different protocols and services. Due to its inherent exibility, optical networking technology has been identified as a key enabler for a new breed of eficient virtualization at the physical network layer or Layer 1 (L1). The major role in this approach play mechanisms and protocols for the dynamic and automatic network control, the most prominent of which have been proposed within the IETF Generalized Multi-protocol Label Switching (GMPLS) framework. Motivated by the need for efficient resource management in virtualized optical networks, this thesis develops the GMPLS network federation architecture and the Infrastructure Service model based on two novel concepts: (1) the dynamic interconnection of GMPLS domains is facilitated with the introduction of the novel GMPLS Exchange Point (GXP), which is a physical layer equivalent of the Internet Exchange Point (IXP), and (2) the resource allocation and sharing of resources among infrastructure services are controlled by means of a new resource visibility attribute, which represents service-specific resource usage policies within the control plane. Based on these concepts, this thesis develops and evaluates in a simulation study dynamic traffic routing and topology engineering (RToE) methods for the infrastructure services. The results obtained demonstrate signi cant performance benefits of the visibility-enabled resource control and GXP-based architecture, and indicate important directions for further standardization and research work.