A method and apparatus for minimizing system deterioration caused by polarization
effects (e.g., a polarization-dependent gain (PDG), a polarization-dependent loss
(PDL), and a polarization mode dispersion (PMD)). The apparatus performs a signal
modulation process to enable one bit to simultaneously contain two orthogonal polarization
components, resulting in a minimum DOP (Degree Of Polarization). If a signal undergoes
the PMD, the apparatus converts an NRZ (Non Return to Zero) signal into an RZ (Return
to Zero) signal, resulting in minimum inter-symbol interference caused by the PMD.
The apparatus can improve a performance of an optical signal during the PMD operation,
whereas a conventional PMD compensation technique has been designed to remove system
deterioration caused by only the PMD.