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Simulation is presented on the effects of polarization mode dispersion (PMD) as a source of system impairment in high bit-rate fiber-optic transmission systems. A simulation model is introduced that illustrates how the differential group delay (DGD) affects the bit error rate (BER) limiting the system performance. Power penalty due to PMD is determined from both the eye diagram and BER curve and their mutual consistency is verified. As a PMD compensation scheme, in this paper, a polarization controller (PC) is used and the performance of two systems with and without PC is compared. Results show that at a bit rate of 10 Gbps, for a DGD of 80 ps, power penalty can be improved by about 1.25 dB when using a polarization controller in the system.

A novel polarization multiplexed coherent optical OFDM system is proposed and experimentally demonstrated for 100 Gb/s transmission. In this technique, two signals can be transmitted at the same wavelength with orthogonal state of polarization through OFDM transmitter and at the receiver end those signals are received by coherent detector. The implemented model can be treated as a special kind of multiple-input multiple output (MIMO) model which is intrinsically represented by a two-element Jones vector. Though PMD represents a major source of performance degradation in polarization multiplexed systems due to its polarization sensitive detection, the special MIMO system successfully mitigates the effect without any extra compensation system. Performance of the system is evaluated through simulation and different criteria are analyzed with the simulation result.