High bit rates optical communication systems pose the challenge of their tolerance to linear and nonlinear fiber impairments.The techniques processing of linear and nonlinear impairments involve which balance between linear and nonlinear impairments. Optical Solitons are the special breed of wave packets which can propagate over long distance without changing in their shape and velocity. Effective transmission distance could be increased by proper circuit designing and balancing Group velocity dispersion (GVD) with its counterpart Self phase modulation (SPM. The comparison between the results of single channel soliton source and CW laser 33% RZ_DPSK modulatiom formats shows that the soliton source has the better performance than the CW. Soliton source which has a Q factor of 98.4 at distance of 60Km,
while the CW laser with 33% RZ-DPSK has 70.01 at distance at 60Km, when power lunch is (10) dBm. On other hand the BER is (-11.2) when SNR (5) dB at 60km, while CW laser with 33% RZ-DPSK has BER (-20) at SNR (5) dB at distance 60Km.The soliton system at multichannel (8x40Gb/s) with 50 GHz channel spacing has BER (-15) while 33%RZ-DPSK has BER (-9) at SNR (6.87) dB at 60Km distance.