We extend the Shannon information theory to a nonlinear system and present
a model for calculating the channel capacity of an optical-fiber transmissi
on system using dispersion-free fiber. For this particular fiber, a closed-
form solution for the nonlinear Schroedinger equation exists. This allows u
s to derive an analytical result for the channel capacity that is exact and
valid for arbitrary input power. We will study the single-span case and ex
amine the dependence of the capacity on operating input power, the number o
f channels (N-c), the noise power (P-W), etc. The maximum capacity is shown
to follow a simple scaling law with log(2) (1 + CNc-2/3PW-2/3) with depend
ence.