Coherent state quantum key distribution with multi letter phase-shift keying

We present a protocol for quantum key distribution using discrete modulation of coherent states of light. Information is encoded in the variable phase of coherent states which can be chosen from a regular discrete set ranging from binary to continuous modulation similar to phase-shift keying in classical communication. Information is decoded by simultaneous homodyne measurement of both quadratures and requires no active choice of basis. The protocol utilizes either direct or reverse reconciliation both with and without postselection. We analyze the security of the protocol and show how to enhance it by the optimal choice of all variable parameters of the quantum signal.