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In this paper, the four wave mixing effect has been compared for different values of ultra low channel spacing and the performance has been evaluated in terms of output spectrums, eye diagrams, BER, eye opening and Q-factor. The simulation results reveal that four wave mixing is minimum at high wavelength spacings. Further, it has been observed that on increasing the spacing between input channels, their interference with each other decreases and thus, the four wave mixing effect also decreases. At ultra low channel spacing of 6.25GHz, the four wave mixing effects are maximum.