We show that passive InP-InGaAsP waveguides exhibit high nonlinear loss due
to the highly energetic carriers generated by two-photon absorption. We ha
ve further demonstrated, for the first time, that due to this effect, sever
e crosstalk occurs between wavelength channels when they are transmitted th
rough a semiconductor waveguide operated in the transparency region, at pow
er levels used in typical wavelength-division-multiplexed (WDM) systems. So
me solutions are proposed.