Coherence multiplexing exploits the coherence properties of optical so
urces so that many users may be multiplexed onto a single physical cha
nnel giving a secure, asynchronous mode of transmission, free of centr
al network control. In the paper, for the first time, the system perfo
rmance limitations owing to the impact of interference from unwanted u
sers is presented and the suitability of LED, single-mode Fabry-Perot
laser and DFB sources are considered. It is concluded that the single-
mode Fabry-Perot is preferred, offering readily achievable interferome
ter length tolerances and near complete RF rejection of interferometri
c noise at the receiver. However, interferometric noise still limits t
he network capacity: a linewidth of 1nm permits 17 users to be simulta
neously offered a single video channel with a BER < 10(-9).