Early methods of optical fiber communication systems haven't been much promising in terms of efficiency. The presence of various impairments in the fiber channel has forced researchers to uncover solutions in order to minimize those effects. With the advancement of technology, optical solutions were finally easier to implement in the system. To this day, optical compensation methods are still found to be as the best way to minimize fiber impairments. However, such technique does introduce enormous complexity to the system, in addition to a large cost. For that reason, the main focus had to shift to an alternative method. Electrical compensation techniques have provided the factor of simplicity to the optical communication system, not to mention that they are relatively cheaper than optical compensators. Furthermore, electrical schemes were found to handle fiber impairments in a relatively efficient manner. In this thesis, an optical fiber communication scheme using the direct-detection method is simulated. A frequency shifter in the optical domain will be used for the system to have a coherent like detection. At the receiver's side, a linear equalizer is realized to offset the linear effects caused by the fiber. To our knowledge, this will mark the first direct detection transmission system to pass the one thousand kilometre mark in fiber length. Furthermore, we simulate another optical fiber communication design using the coherent detection. A nonlinear compensator adapting the Volterra approach will be used to offset nonlinear impairments. Such performance will be compared to that of a linear compensator. Design trade-offs will be analyzed, and the nonlinear compensator is found to a improve performance when a dispersion compensation fiber (DCF) is introduced in the optical domain. / Thesis / Master of Applied Science (MASc)