Nonlinear interaction between optical pulses limits the transmission speed of the optical communication system with solitons or very short optical pulses. A new technique of optical pulse separation is proposed. In this technique, optical pulses can be separated by employing the nonlinearity of fiber and the negative dispersion of the interferometer. It is shown that this method can remove undesirable interaction between optical soliton pulses, thus keeping the original information. The maximum channel capacity of fiber optic communication obtained by this pulse separation technique is discussed. The maximum bitrate can be 1 Tbit/s which is determined by the transform limit and by the dispersion of nonlinear fiber and of the interferometer.
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