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Orthogonal frequency-division multiplexing (OFDM) can compensate for linear distortions, such as group-velocity dispersion (GVD) and polarization-mode dispersion (PMD), provided the cyclic prefix is sufficiently long. Typically, GVD is dominant, as it requires a longer cyclic prefix. Assuming coherent detection, we show how to analytically compute the minimum number of subcarriers and cyclic prefix length required to achieve a specified power penalty, trading off power penalties from the cyclic prefix and from residual inter-symbol interference (ISI) and inter-carrier interference (ICI). We derive an analytical expression for the power penalty from residual ISI and ICI.
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Barros et al. (2008) studied this question.
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