Minimum shift keying (MSK) is used as the coding scheme in a high bit rate optical transmission system, and the signal format is either RZ (return-to-zero) or NRZ (non-return-to-zero). The system can combine multiple individual channels with different wavelengths in a WDM or dense wavelength division multiplexed (DWDM) arrangement. Dispersion management can be provided using several techniques, such as quasi-linear transmissions or conventional RZ transmissions. At the transmitter, an optical MSK transmitter is used to modulate the phase of a stream of high bit rate (e.g., 40 Gbit/s) optical signals. Many such data streams can be combined in a wavelength division multiplexer and transmitted to a remote receiver, where the signal is wavelength division demultiplexed. The encoded data in each wavelength channel is then recovered by an MSK receiver, which may consist of a delay demodulator and a balanced detector.