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In fiber-optic communications, wavelength-division multiplexing (WDM) is a technology which multiplexes multiple optical carrier signals on a single optical fiber by using different wavelengths (colours) of laser light to carry different signals. This allows for a multiplication in capacity, in addition to enabling bidirectional communications over one strand of fiber. "This is a form of frequency division multiplexing (FDM) but is commonly called wavelength division multiplexing."[1] The term wavelength-division multiplexing is commonly applied to an optical carrier (which is typically described by its wavelength), whereas frequency-division multiplexing typically applies to a radio carrier (which is more often described by frequency). However, since wavelength and frequency are inversely proportional, and since radio and light are both forms of electromagnetic radiation, the two terms are equivalent. Source: Wikipedia (http://en.wikipedia.org/wiki/DWDM)

Here are the best overviews and tutorials for dwdm:

tutorial, 4 stars
Dense Wavelength Division Multiplexing (DWDM) Tutorial
This tutorial addresses the importance of scalable DWDM systems in enabling service providers to accommodate consumer demand for ever-increasing amounts of bandwidth. DWDM is discussed as a crucial component of optical networks that allows the transmission of e-mail, video, multimedia, data, and voice carried in Internet protocol (IP), asynchronous transfer mode (ATM), and synchronous optical network/synchronous digital hierarchy (SONET/SDH)...

overview, 3 stars
Wikipedia: Wavelength-division multiplexing
In fiber-optic communications, wavelength-division multiplexing (WDM) is a technology which multiplexes multiple optical carrier signals on a single optical fiber by using different wavelengths (colours) of laser light to carry different signals. This allows for a multiplication in capacity, in addition to enabling bidirectional communications over one strand of fiber. This is a form of frequency division multiplexing (FDM) but is commonly...

tutorial, 3 stars
Dense Wavelength Division Multiplexing (DWDM) Testing
At its simplest, a dense wavelength division multiplexed (DWDM) system can be viewed as a parallel set of optical channels, each using a slightly different light wavelength, but all sharing a single transmission medium. This new technical solution can increase the capacity of existing networks without the need for expensive recabling and can significantly reduce the cost of network upgrades.

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