When does coherent vs direct detection make sense for 40G/100G network deploymen ts?

By Ross Saunders Without a doubt, the networking performance advantages of coherent technology ar e considerable. With coherent detection, the phase information of the optical si gnal is preserved after electro-optic detection, allowing the optical distortion effects such as chromatic and polarization mode dispersion (PMD) to be compensa ted electronically. This is even more elegant in digital coherent detection sche mes (the preferred embodiment in the optical industry), as the adaptive equalize r consists of a digital signal processor (DSP), typically implemented in CMOS AS IC technology, which is low cost to produce in volume. However, as is typical in this industry, a one solution fits all idea that coheren t technology wins in all applications is incorrect, nor is it likely to be in th e near future. Fundamentally, coherent optical systems require much more complex electro-optics than direct-detection schemes. Typical 40G/100G coherent systems use the polari zation-multiplexed quadrature phase-shift keying (PM-QPSK) modulation scheme. Th is approach requires: two lasers dual polarization nested Mach-Zehnder modulators (basically, four modulators) four driver amplifiers four balanced photodiodes some optical passives for polarization beam combining/splitting and phase diversi ty. Compare this to differential phase-shift keying (DPSK), which requires a single laser/driver amp/modulator/photodiode and delay interferometer plus a tunable di spersion compensator (TDC). The increased complexity of coherent schemes simply translates into increased co st. One smart thing the industry is doing at 100G is to standardize the modulati on scheme and integrated photonics in the OIF. This certainly helps the cost str ucture but, at least in the early years, not enough to offset the more complex t ransmit/receive design for coherent. In some network applications, using coherent detection will still make sense, ev en though the transponder cost is higher. For example, the PMD tolerance of dire ct-detection schemes using 40G DPSK is around 3 ps mean, or around 8 ps if used with a PMD compensator or for a RZ-DQPSK modulation format. PMD beyond these lev els can easily be satisfied using coherent detection. In addition, assuming a cl ean design with low implementation penalty, coherent detection should offer a 2to 3-dB OSNR improvement, enabling greater distance for trans-oceanic submarine or terrestrial ultra long haul (ULH) applications. Another application where coherent technology has an advantage is for low-latenc y connectivity. The use of coherent detection can completely eliminate the need for optical fiber based dispersion compensation, which reduces the distance, and hence latency, of the optical link. This has some advantages in the financial c ommunity and for gaming applications. The bottom line, though, is that while there are network applications where cohe rent s transponder cost premium can be justified by the reduction in OEO regenerat ors required at the network level, there are others where it can t. The marketing and performance advantages of coherent detection make for an easy sell -- but ec onomic reality means that there will be many metro, regional, long haul, and eve n submarine links where 40G DPSK or DQPSK will offer the best price/performance tradeoff.

Direct detection has dominated 40G deployments to date, with strong demand forec asts in 2011, 2012, and 2013. Coherent 40G technology will begin deployments in especially challenging applications such as very high PMD older fibers or transoceanic submarine. But wide-scale coherent technology is not likely to happen un til 100G matures, where the performance advantages of coherent really become a mu st-have in the majority of applications. For 100G coherent, the use of OIF integrated photonics is also expected to provi de a competitive $/bit/s cost structure at a fairly early stage in the technolog y life cycle. Even after 100G availability, 40G direct detection is likely to su rvive as a dominant technology in metro/regional networks and smaller national n etworks where 100G pipes are still too big to fill efficiently.