Abstract: In this paper, dispersion compensating fibers (DCF) are used to compensate the positive dispersion accumulated over the length of the fiber at 10Gbits/sec and 250 km of optical fiber with 50 km of DCF. Three schemes (Pre-compensation, post-compensation and symmetrical-compensation) of dispersion compensation with DCF are proposed. The simulated transmission system has been analyzed on the basic of different parameters by using OptiSystem 7.0 simulator. The results of three dispersion compensation methods are compared in terms of four parameter, which are Q-factor, BER, Eye height and threshold value, investigated at the receiver end. Further, it has been observed that the system needs proper matching between EDFA gain and the length of the fiber for the optimum performance.

Keywords: Dispersion compensation, Dispersion compensating fiber (DCF), BER, Q-factor, Eye height.