Abstract-We present theoretical and experimental results for the signal-to-noise ( S / N ) ratio caused by mode partition noise, intensity noise, and reflection-induced noise in optical data links. Under given conditions an additional noise source with a S I N ratio of 20 dB will cause a power penalty of 1 dB in order to maintain a bit error rate. From our numerical simulations we predict the maximum allowable dispersion in the presence of mode partition noise to be approximately 40 percent of a clock period. This figure is almost independent of bit rate and laser structure and agrees well with our measurements and with results of other workers. Numerical simulations of a BH and a TJS laser were carried out at four bit rates from 565 Mbit/s to 4.5 Gbit/s and the measurements were done at 2.2 Gbit/s using a TJS laser.