In this paper, we discuss important issues and bottlenecks faced by the nex
t generation dense wavelength division multiplexing-based ultra high-speed
optical networks. Dense wavelength division multiplexing (DWDM) is a techni
que that increases the information carrying capability of optical networks
by transmitting multiple channels at different wavelengths on a single fibe
r strand. DWDM-based optical networks promise integration of diverse multim
edia services (i.e. voice, data, and video etc.). Additional channels and h
igher data rates result in several folds increase in the bandwidth of the n
etwork. However, several issues arise by increasing data rates on each chan
nel and the number of channels. Nonlinear effects in fiber, erbium-doped op
tical amplifier noise, chromatic dispersion, and processing bottlenecks are
major limitations. This paper will study these issues from an analytical p
oint of view. (C) 2001 Elsevier Science B.V. All rights reserved.