We present theoretical investigation of all-optical differential phase-shift keying (DPSK) regenerative wavelength multicasting using dual-pump degenerate phase sensitive amplifier (PSA), based on seven-wave model rather than traditional three-wave model. We first test the accuracy of the seven-wave model in the context of 40 Gb/s DPSK all-optical regenerative multicasting. We find that the seven-wave model is more accurate than the three-wave model. Meanwhile, we successfully optimize optical signal power, frequency spacing between two pumps, and regeneration capability of all multicasting channels. All-optical DPSK regenerative one-to-nine wavelength multicasting can be successfully realized. Both eye diagrams and the calculated bit error rate curve demonstrate that the optical signal to noise ratio penalties of all multicasting channels are improved by around 3 dB. Finally, to the best of our knowledge, we investigate, for the first time, the effects of the high-order four-wave mixing (FWM) products on the evolution of pump-to-signal intensity modulation transfer (IMT) and IMT from the pump to all wavelength-multicasting channels in a dual-pump degenerate PSA. We find that high-order FWM products contribute to the suppression of pump-to-signal IMT after proper optimization of dual-pump's frequency spacing and signal optical power. Both regenerative one-to-nine wavelength multicasting and pump-to-signal IMT smaller than 1 can be simultaneously achieved under the gain saturation region.
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