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1550nm 1G fiber optic transceiver

How WDM Works

For WDM to work properly, there needs to be a multiplexer and a demultiplexer on the fiber. In the past, a fiber might only have one or the other. Nowadays, some fibers can do both at the same time. A multiplexer at the transmitter takes the signal and joins it together. Once it hits a demultiplexer, the joined signal is split apart at the receiver.

WDM technology is so appealing to different telecommunication companies because it allows them to transmit more data over their current fibers without having to lay more fiber down. It has been found that the capacity of a fiber can be increased tremendously simply by upgrading the multiplexer and demultiplexer on any given link. These days, the systems can handle up to 160 signals. This means that it expands a 10 Gbit/s fiber system to a capacity of over 1.6 TB/s over a single fiber. That is a tremendous increase in capacity.

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