Decreasing the average transmitted power in an optical fiber communication channel using multilevel amplitude modulation in conjunction with Pulse Position Modulation (PPM). This multilevel PPM method does not entail any tradeoff between decreased power per channel and channel bandwidth, enabling a lower average transmitted power compared to On/Off Keying (OOK) with no reduction in aggregate data rate. Therefore, multilevel PPM can be used in high-speed Dense Wavelength Division Multiplexed (DWDM) systems where the maximum number of channels is traditionally limited by nonlinear effects such as self-phase modulation (SPM), cross-phase modulation (XPM), four-wave mixing (FWM), stimulated Brillouin scattering (SBS), and stimulated Raman scattering (SRS). This modulation technique can enable an increased number of channels in DWDM systems, thereby increasing aggregate data rates within those systems.