Optical Time Division Multiplexing (OTDM) and advanced modulation formats represent the future in development of high speed communications. In this thesis the feasibility of OTDM systems combined with multilevel modulation is studied. The report is focused on Differential Quadrature Phase Shift Keying (DQPSK) modulation. Computer simulations study the performance of an OTDM system using DQPSK modulation at 1.28 Tb/s and a 640 Gb/s OTDM system combined with DPSK modulation. Two solutions for channel demultiplexing are shown: Nonlinear Optical Loop Mirror (NOLM) and Four Wave Mixing (FWM). These techniques need an optical control signal. Optimum values for the data and control signals frequencies and for the bandwidth of the filter are evaluated. Furthermore numerical simulations are performed to evaluate the transmission performances of a 1.28 Tb/s OTDM-DQPSK system and a transmission through 480 km is demonstrated
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