This study aims to evaluate the effectiveness of selected color filter film for demultiplexer construction where only signals with certain wavelengths are allowed to pass through the demultiplexer while the other signal that carrying different wavelengths are absorbed. Characterization testing and analysis is done based on recorded data. Demultiplexer components are characterized by a Same Filter Different Sources (SFDS) and performance of transmitted signal has been measured. Demultiplexer developed is effective in short range communication, using low cost components and simple techniques. Communication range for short range communication is maximized. Only signals with certain wavelengths are allowed to pass through the multiplexer. The rest are absorbed. Several measures are made to ensure efficiency, such as testing and measurement on parametres contribting to loss. Best filters are selected based on their ability to block certain wavelengths while letting others ro pass through efficiently