Theoretical and experimental results are presented for the signal-to-noise (S/N) ratio caused by mode partition noise, intensity noise, and reflection-induced noise in optical data links. Under given conditions an additional noise source with a S /N ratio of 20 dB will cause a power penalty of 1 dB in order to maintain a 10-9 bit error rate. From numerical simulations the authors predict the maximum allowable dispersion in the presence of mode partition noise to be approximately 40% of a clock period. This figure is almost independent of bit rate and laser structure and agrees well with the measurements and with results of other workers. Numerical simulations of a buried-heterostructure and a TJS laser were carried out at four bit rates from 565 Mbit/s to 4.5 Gbit/s and the measurements were done at 2.2 Gbit/s using a TJS laser
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