Intrachannel nonlinearity enhancement in polarization multiplexed phase modulated systems with differential detection.

We compare nonlinear impairments in phase-modulated transmission with and without polarization multiplexing. Using an analytic approach that enabled us to accurately predict the Q factor at the receiver, we show that, without polarization multiplexing, the differential receiver is insensitive to two-pulse cross phase modulation, whereas with polarization multiplexing two-pulse interaction between cross-polarized components causes significant performance degradation.