A method of transmitting information over a non-linear optical channel includes the step (152) of generating an information-bearing signal, preferably an OFDM signal, which includes a plurality of closely-spaced sub-carriers in the frequency domain. A time-varying phase modulation is determined (154), which is a first function, and preferably a linear function, of the transmitted optical power corresponding with the information-bearing signal. The information-bearing signal and the time-varying phase modulation are applied (156) to an optical source in order to generate a corresponding transmitted optical signal having substantially the stated transmitted optical power characteristic. The first function of transmitted optical power is selected so as to mitigate the effect of the non-linearity of the optical channel upon the transmitted optical signal. In alternative arrangements, a time-varying phase modulation, being a second function of optical power, is computed (162) and applied (164) to a signal received following transmission through a non-linear optical channel. The two alternative arrangements provide, respectively, for pre-compensation and post-compensation of non-linear propagation effects that may be carried out entirely within the electrical domain, for example using digital signal processing techniques.