It is well known that for a specified radio capacity, the peak performance
[such as the minimum bit error rate (BER) or probability of outage] of subc
arrier multiplexing (SCM)-based fiber-fed microcellular systems is limited
by the nonlinearity of the optical source. Conversely, for a specified perf
ormance, the maximum radio capacity is restricted by the source nonlinearit
y, It is the goal of this paper to examine the robustness of a code-divisio
n multiple-access (CDMA)-based system in the presence of these nonlineariti
es. This is done by comparing the error and outage probabilities of a CDMA-
based system to that of a conventional SCM system, which utilizes frequency
-division multiple access (FDMA), It is shown that a CDMA system can relax
the bounds on the performance or capacity. However, this improvement is obt
ained at the expense of large chunks of bandwidth, An alternative hybrid CD
MA/FDMA approach is examined, wherein the inherent benefits of both CDMA an
d FDMA techniques are utilized. Performance evaluation shows that the hybri
d system achieves the same system requirements in a more spectrally efficie
nt manner.