Spectral switching is now a well-known phenomenon. Recently, its potential applications have been explored for information encoding and transmission in free space. In this paper, we demonstrate a novel type of scheme to encode and process information at multiple levels through spectral switching. A new technique is also proposed to establish multiple parallel free-space optical (FSO) links using a single critical direction in the phase singularity domain of diffracted polychromatic light. These are contrived ideas on the basis of theoretical and experimental studies carried out so far on spectral switching. The study might find potential application in the fields of FSO interconnects and FSO communication.