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Motivated by the looming “capacity crunch” in fiber-optic networks, information transmission over such systems is revisited. Among numerous distortions, inter-channel interference in multiuser wavelength-division multiplexing (WDM) is identified as the seemingly intractable factor limiting the achievable rate at high launch power. However, this distortion and similar ones arising from nonlinearity are primarily due to the use of methods suited for linear systems, namely WDM and
linear pulse-train transmission, for the nonlinear optical channel. Exploiting the integrability of the nonlinear Schroedinger (NLS) equation, a nonlinear frequency-division multiplexing (NFDM) scheme is presented, which directly modulates non-interacting signal degrees-of-freedom under NLS propagation. The main
distinction between this and previous methods is that NFDM is able to cope with the nonlinearity, and thus, as the the signal power or transmission distance is increased, the new method does not suffer from the deterministic cross-talk between signal
components which has degraded the performance of previous approaches. In this paper, emphasis is placed on modulation of the discrete component of the nonlinear Fourier transform of the signal and some simple examples of achievable spectral efficiencies are provided.This work was sponsored by the Natural Sciences and Engineering Research Council through a Discovery Grant, and also by the Canada Research Chairs Program through a Tier I Canada Research Chair
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