This report defines the fundamental parameters affecting the capacity of a soft-decision optical channel, and relates them to corresponding parameters for the well-understood AWGN channel. For example, just as the performance on a standard additive white Gaussian noise (AWGN) channel is fully characterized by its SNR, a corresponding Webb channel is fully characterized by its SNR, and a single additional skewness parameter /spl delta//sup 2/ which depends on the photon detector. In fact, this Webb channel reduces to the standard AWGN channel when /spl delta//sup 2//spl rarr//spl infin/. Numerical results show that the capacity of M-ary orthogonal signaling on the Webb channel exhibits the same brick-wall Shannon limit (M ln 2)/(M-1) as on the AWGN channel (/spl ap/-1.59 dB for large M), and that soft output channels offer a 3 dB advantage over hard output channels.
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