Improved dispersion compensating circuits for optical transmission systems are disclosed. According to the improved method, there is provided a compensation circuit comprising a varactor diode network. The network is preferably inserted between a source of laser modulating signal and the laser. A low pass filter constructs the network. The network preferably includes an inductance and a combined circuit, which includes varactors. The network preferably provides an amplitude dependent delay of the modulating signal applied to the laser. In a first embodiment, a fixed capacitor is in series with a varactor and connected to a DC bias through inductor. In a second embodiment, second varactor is in series with varactor instead with an opposite polarity of a fixed capacitor as used in the first embodiment. In a third embodiment, two varactors 301 and 302 are used in place of the fixed capacitor in parallel.