In this paper we propose a new sliceable bandwidth variable transponder (SBVT) architecture with the separate analysis on the transmitter and receiver section. In transmission section we propose a distance module (DM) which is a programmable module. It divides a data stream/main stream (which employs a super-channel) into sub-stream and assigned modulation technique to each sub-stream based on their light path distance detailing the concept of sub-channel. In this paper, we have also proposed an algorithm for the distance module. Next we propose a modulation and transmission module (M&TM), where, planar light wave circuit (PLC) is used for enabling three modulation techniques (PM-16QAM, PM-QPSK and PM-BPSK). Finally, we propose the receiving section, which is designed to support three modulation techniques. It consists of two demodulator circuits, one for PM-16QAM/PM-QPSK and the other for PM-BPSK. In this proposed work, we focus on the multi-mode interference (MMI) devices (MMI coupler and MMI splitter) because of their photonic integration technology which is necessary for the implementation of SBVT. Lastly, we propose an elastic optical node architecture which removes the limitations of previously discussed node architecture for long distance communication.