Abstract-The current status of lithium-niobate external-modulator technology is reviewed with emphasis on design, fabrication, system requirements, performance, and reliability. The technology meets the performance and reliability requirements of current 2.5-, 10-, and 40-Gb/s digital communication systems, as well as CATV analog systems. The current trend in device topology is toward higher data rates and increased levels of integration. In particular, multiple high-speed modulation functions, such as 10-Gb/s return-to-zero pulse generation plus data modulation, have been achieved in a single device.

The optical nonlinearity in a single-mode fiber imposes a fundamental limitation on the capacity of optical frequency-division multiplexed (OFDM) systems. In particular, four-wave mixing (FWM) crosstalk may severely degrade the system performance when the fiber input powers are large and/or the channel spacing is too small. Theoretical and experimental results of the effects of FWM in OFDM systems are presented. The theoretical results demonstrate the dependence of FWM on various systems parameters. Also included is an analysis of FWM in both unidirectional and bidirectional transmission systems. The receiver sensitivity degradation from FWM crosstalk was measured in a 16-channel coherent system. A sensitivity penalty of 0.4 dB resulted when a signal power of -3 dBm/channel was transmitted through 12 km of dispersion-shifted fiber.

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Measured effective mode indices on a day to day basis reveal an oscillatory behavior which indicates that the index profile of proton-exchanged LiNbO3 waveguides evolves as a function of time. It is suggested that the profile instability might be brought about by a continuous migration of protons within the thickness of the guiding layer. Some index profile modificaiton may also be introduced during fabrication due to structural changes in the crystal as a function of exchange time.

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