We demonstrate return-to-zero (RZ) differential quarternary phase-shift keying (DQPSK) signal transmission over a single-mode fiber by taking advantage of mid-span optical phase conjugation (OPC). The technique is based on nonlinear wavelength conversion by cascaded second harmonic and difference frequency generation in a Ti:PPLN waveguide. Error-free operation with a negligible optical signal-to-noise ratio penalty for the signal after the OPC transmission without and with polarization scrambling was achieved. The results also show the polarization insensitivity of the OPC system using a polarization diversity scheme.
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