We quantify the polarization-mode dispersion (PMD)-induced system outage pr
obability by means of numerical simulations for nonreturn-to-zero (NRZ) and
return-to-zero (RZ) data formats with proper comparative conditions and fi
nd that RZ performs better than NRZ. We also study the impact of the RZ dut
y-factor and the tradeoff between power margin and acceptable PMD.