We compare nonreturn-to-zero (NRZ) with return-to-zero (RZ) modulation form
at for wavelength-division-multiplexed systems operating at data rates up t
o 40 Gb/s, We find that in 10-40-Gb/s dispersion-managed systems (single-mo
de fiber alternating with dispersion compensating fiber), NRZ is more adver
sely affected by nonlinearities, whereas RZ is more affected by dispersion.
In this dispersion map, 10- and 20-Gb/s systems operate better using RZ mo
dulation format because nonlinearity dominates. However, 40-Gb/s systems fa
vor the usage of NRZ because dispersion becomes the key limiting factor at
40 Gb/s.