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We present stimulation results for DWDM systems with an ultra-high capacity up to 1.28 Tbit/s and spectral efficiency approaching 0.4 bit/s/Hz. The impact of signal-to-noise ratio (SNR) on parameters such as channel spacing, length of fiber, dispersion, and number of channels has been investigated and the results obtained have been explained on the basis of fiber nonlinear effects. It has been shown that with an increase in channel spacing, the SNR increases to the maximum optimum value and then decreases to a steady value. With an increase in number of channels, the SNR decreases for small wavelength spacing. For large wavelength spacing, it becomes independent of the number of channels. Keeping channel spacing constant, the SNR decreases with an increase in the length of the fiber. The SNR also improves with a small increase in dispersion of the fiber. Further, it is observed that, with increase in …