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We demonstrate and analyze data modulation of terahertz (THz) signals in the 1 Mbit/s range. THz pulse trains are phase and amplitude encoded with pseudorandom binary data, transmitted over a short distance, and detected. Different modulation formats are generated. Bit error measurements characterize the communication channel. We estimate from experimental results the maximum data rates for an optimized system.

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Interchannel cross-phase-modulation-induced polarization scattering (XPMIPS) and its effect on the performance of optical polarization mode dispersion (PMD) compensation in wavelength-division-multiplexed (WDM) systems are studied. The level of XPMIPS in long-haul WDM transmission systems is theoretically quantified, and its effect on optical PMD compensation is evaluated with numerical simulations. We show that in 10-Gbit/s ultra-long-haul dense WDM systems XPMIPS could reduce the PMD compensation efficiency by 50%, whereas for 40-Gbit/s systems the effect of XPMIPS is smaller.