Abstract: An optical communication system having a transmitter in which a pair of optical signals having different frequencies are modulated using a duobinary encoding scheme, and then multiplexed using polarization division multiplexing. Advantageously, the frequency difference between the two signals can be less than the data rate conveyed by each signal, resulting in a narrow spectral bandwidth, while still allowing demultiplexing at a receiver using simple bandpass filters and without the need of any form of polarization tracking. A receiver has a beam splitter for splitting the received optical signal into two portions which are each directed, via respective bandpass filters centred at slightly different frequencies, to respective detectors. Advantageously, the frequency difference between the frequencies at which the bandpass filters are centred can be less than the data rate of a detected signal.