Free-space atmospheric direct detection optical communication at 980 nm with multiple quantum well retro-reflectors is attractive because of the availability of high power, good beam quality 980 nm laser diodes as transmitters and very low noise silicon avalanche photodiodes for use in the receivers. The paper will report the results of measurements of intensity fading statistics for broadband, low coherence volume 980 nm laser sources. In addition, results of measurement of both intensity spatial correlation lengths and optical field spatial correlation lengths will be described. The former determines receiver performance and the latter the optimal positioning of arrays of MQW retro-reflectors to make best use of the spatial diversity of the atmospheric channel.