In this paper, performance analysis of conventional spectral amplitude coding (CSAC) with hybrid (HSAC) for OCDMA system is investigated in local area network (LAN) environment. The CSAC is built based on arithmetic sequence with simple algebraic ways. The HSAC technique is used in which spectral amplitude coding (SAC) combined with wavelength division multiplexing (WDM) to effectively reduce multiple access interference (MAI) and mitigate the influence of phase induced intensity noise (PIIN) arising in photodetecting process. The main idea is to construct the code sequences in SAC domain then repeat it diagonally in the wavelength domain as groups which maintains the same cardinality of a given code weight. Results show that HSAC outperforms CSAC when the number of active users is high due to its better correlation properties. It has been shown that the HSAC can suppress intensity noise effectively and improve the bandwidth utilization significantly up to 4.2 nm.
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