Polarization mode dispersion (PMD) compensation is addressed by decompositi
on of a fiber's Jones matrix into amplitude and phase responses, which are
then compensated for separately. Cubic and higher-order phase compensation
substantially reduce the cumulative probability at a given system penalty o
ver first-order PMD compensation, as demonstrated for a 40-Gbit/s non-retur
n-to-zero signal and a fiber PMD with a differential group delay of 20 ps (
rms). Single-stage all-pass filters provide tunable compensation that is co
mparable to that obtained with a variable-delay line, and multistage all-pa
ss filters are well suited for higher-order phase compensation. (C) 2000 Op
tical Society of America. OCIS codes: 260.2030, 060.4370, 060.2360, 350.503
0, 060.2430.