Nonlinear limits to the information capacity of optical fiber   communications
  The exponential growth in the rate at which information can be communicated through an optical fiber is a key element in the so called information revolution. However, like all exponential growth laws, there are physical limits to be considered. The nonlinear nature of the propagation of light in optical fiber has made these limits difficult to elucidate. Here we obtain basic insights into the limits to the information capacity of an optical fiber arising from these nonlinearities. The key simplification lies in relating the nonlinear channel to a linear channel with multiplicative noise, for which we are able to obtain analytical results. In fundamental distinction to the linear additive noise case, the capacity does not grow indefinitely with increasing signal power, but has a maximal value. The ideas presented here have broader implications for other nonlinear information channels, such as those involved in sensory transduction in neurobiology. These have been often examined using additive noise linear channel models, and as we show here, nonlinearities can change the picture qualitatively. 
Partha P. Mitra, Jason B. Stark