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We investigate the ultimate QAM channel capacity of a laser diode in a hybrid fiber/coax network which is limited by the laser-clipping induced nonlinear distortions (NLD''s) and the relative intensity noise (RIN). Our study includes a spectral analysis, a complete system simulation, and an experiment. In the experiment, up to 70 channels of vector-arbitrary-waveform- synthesizer generated upstream QPSK or 16-QAM signals were used to modulate an isolated/cooled DFB laser and two unisolated/ uncooled Fabry-Perot lasers, respectively. Our analytical results show that for an upstream laser diode, over 1000 QPSK channels or 170 16-QAM channels can be delivered, even in the presence of a high RIN level of -115 dB/Hz. However, these high capacities are reduced significantly when we consider the effect of collision-based medium access control (MAC) protocols. We found that, in the worst case condition (collisions occur in all but one channels), the ultimate QPSK channel capacity of an upstream laser diode is dramatically reduced from over 1000 to 125 for 8 collisions/channel. These results have important implications to systems transporting frequency-stacked return- path bands with or without collision-based MAC channels. As regard to the ultimate capacity of a downstream laser diode with a RIN level of -135 dB/Hz, we found that as high as 600 and 128 channels of 64-QAM and 256-QAM signals can be transported, respectively. Through computer simulations, we also propose and verify the use of a precoding technique to eliminate the NLD''s in a QAM channel which is transported along with multiple AM-VSB channels by a laser diode. We show that, for the first time, the precoding technique can completely remove the clipping-induced bit-error-rate floor at a cost of a 3 dB signal-to-noise ratio reduction.
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