An optical transmission system and method for reducing non-linear distortion caused by the interaction of Self Phase Modulation and Group Velocity Dispersion is disclosed. An optical link includes a transmitter for providing signals at a first optical wavelength, a transponder for converting the first optical wavelength to a second optical wavelength, a plurality of spans of optical transmission fiber and optical fiber amplifiers, a dispersion compensating device, and a receiver. The system operates at a relatively high input power level. The transponder includes a device for smoothing edges of the rise and fall times of optical pulses, such as an electrical attenuator and low pass filter, so that sharp-edged pulses received from the transmitter are transformed to a Gaussian shape. A dispersion compensating device, such as an optical fiber grating, also helps to improve the bit error rate as a function of receiver sensitivity despite an overall link length less than 600 km.
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