In this article the optical time division multiplexingtechnique for high speed point-to-point optical networksis discussed. We performed test of influence of selected types modulation formats in the optical time division multiplexing simulation model with a distance of 30 km. Additionally, this paper focuses on maximum bandwidth usage, improvement of bit error rate and the another goal is to achieve the maximal transmission distance by using of special compensation optical fiber. Optimal length of compensation optical fiber was found and used during simulations. We demonstrated positive influence compensation optical fiber on bit error rate. For comparisonof modulation formats such as return-to-zero, non-return-to-zero, chirped-return-to-zero, carrier-suppressed-return-to-zero, and m-ary quadrature amplitude modulation were tested. Our results confirm that it is possible to achieve better bit error rate for selected modulation formats.