The paper demonstrates a spectrum slicing technique applied to PAM-4 modulated signal spectrum at 40 Gbaud baudrate for optical access networks. The spectrum slicing is shown in VPIphotonics simulation environment, where characteristics of key components are measured in the laboratory and loaded into the corresponding elements of the simulation setup. The spectrum of electrical baseband signal is sliced in four slices introducing an additional degree of freedom – higher data rate signals can be transmitted by re-using already-existing lower bandwidth transceiver components in an optical access network. This tackles the electronic bottleneck enabling the on-demand variable bandwidth allocation and extends the life span of opto-electrical components during network upgrades. Furthermore, the use of the proposed spectrum slicing technique has a positive side-effect when it comes to security concerns, as the signal spectrum is divided into slices. All slices are necessary to obtain the reconstructed signal and even if an eavesdropper gets most of the slices it is still not enough. The simulation results show that the proposed spectrum slicing and stitching approach is a viable solution to overcome the problem of limited frequency bandwidth of electrical components. Keywords: Fast Fourier Transform (FFT), optical access network, pulse amplitude modulation 4 (PAM-4), spectrum slicing, transceiver.