We analyze in detail a simplified configuration of a compensation method ba
sed on a negative nonlinearity. It is shown that one can cascade the compen
sation of dispersive and self-phase modulation effects accumulated along a
communication line without serious degradation in the quality of the transm
itted signal. Anomalous and normal dispersion regimes are compared. Amplifi
er noise and higher-order dispersion are taken into account in numerical si
mulations using either RZ or NRZ modulation formats. The split compensator
approach appears to be better suited to a first experimental proof demonstr
ation. (C) 1999 Elsevier Science B.V. All rights reserved.