Abstract
An optical heterodyne communication system is described which employs a separate stable laser local oscillator at the receiver. The theoretical advantage of quantum-limited reception has been realized, demonstrating an improvement in receiver sensitivity of more than 40 dB over that of a conventional photodetector receiver. The fundamental sources of noise in the system are identified as laser oscillator frequency noise, atmospheric phase noise, atmospheric amplitude noise, and quantum noise. The quantitative characteristics of these noise sources are analyzed as they influence the operation of AM and FM laser communications.

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