A universal post-compensation scheme for fiber impairments in wavelength-division multiplexing (WDM) systems is proposed based on coherent detection and digital signal processing (DSP). Transmission of 10 x 10 Gbit/s binary-phase-shift-keying (BPSK) signals at a channel spacing of 20 GHz over 800 km dispersion shifted fiber (DSF) has been demonstrated numerically.

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An approximate analytical expression for the bit error rate of a QPSK homodyne receiver employing digital signal processing for carrier recovery is derived. BER estimated using the analytical expression is in excellent agreement with Monte-Carlo simulations. The analytical approximation leads to an intuitive understanding of the trade off in such systems and allows optimization of system parameters without resorting to Monte-Carlo simulations.

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