The effects of chirp and fiber nonlinearity in a directly modulated 10-Gb/s intensity-modulated direct-detection (IM-DD) fiber transmission system are investigated by simulation, and a simple and flexible technique for compensating these effects is discussed. Self-phase-modulation (SPM) in optical fiber can be equalized by an anomalous dispersion fiber, whereas pulse broadening caused by laser transient chirp can be compensated by normal dispersion. Using these characteristics, laser transient chirp, SPM, and fiber dispersion can be simultaneously compensated by equalizing fibers inserted within certain intervals. Optimum compensation is always realizable for such fixed equalizing fibers, since the magnitude of SPM can be controlled by changing the optical power in the fiber. Simulation suggests that this technique enables 10-Gb/s, 100-km fiber transmission by direct modulation.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">></ETX>