The basic equations governing noise phenomena are derived from first p
rinciples and applied to examples in optical communications. Quantum n
oise arises from two sources, the momentum fluctuations of electrons a
t optical frequencies and the uncertainty-related fluctuations of the
electromagnetic field. Shot noise results from the beating of the nois
e sources with the signal field. In high-gain amplifiers, the spontane
ous-emission noise dominates shot noise and results in a noise figure
of at least 3 dB. It is shown explicitly how, at high power, both the
laser field and the laser noise source become classical. The increase
in noise in lasers with open cavities is not due to enhanced spontaneo
us emission as once thought, but to single-pass amplification. The noi
se fields and spontaneous currents have Gaussian distributions, while
nonlasing modes have exponential photon-number distributions. Low-freq
uency intensity fluctuations arise from the electric current driving t
he laser and can be sub-Poissonian, in contrast to shot noise, which h
as a Poissonian distribution. The calculational tools are a wave equat
ion for the field operator and a rate equation for the carrier-number
operator, each containing spontaneous current noise sources. The corre
lation functions of these sources are determined by the fluctuation-di
ssipation theorem.