The trend toward higher bit rates in lightwave communications has incr
eased interest in dispersion-shifted fiber to minimize dispersion pena
lties. At the same time optical amplifiers have increased interest in
wavelength multiplexing. These two methods of increasing system capaci
ty, if used together, can result in severe degradation due to fiber no
nlinearity. This paper discusses the impact of the principal nonlinear
ity, four-photon mixing, and describes strategies that allow simultane
ous use of high bit rates and WDM.