Nonlinearity management in a dispersion-managed system.

We propose using a nonlinear phase-shift interferometric converter (NPSIC), a new device, for lumped compensation for nonlinearity in optical fibers. The NPSIC is a nonlinear analog of the Mach-Zehnder interferometer and provides a way to control the sign of the nonlinear phase shift. We investigate a potential use of the NPSIC for compensation for nonlinearity to develop a dispersion-managed system that is closer to an ideal linear system. More importantly, the NPSIC can be used to essentially improve single-channel capacity in the nonlinear regime.

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