A system and method for transporting encrypted data having a transmitter and a receiver is provided. The transmitter generates a sequence of optical pulses, which are copied and output as identical channels. The identical channels are modulated by a plurality of modulators using data to generate a modulated data signal. Respective spectral phase encoders coupled to each of the plurality of data modulators encode respective modulated data signals using a plurality of mutually orthogonal phase codes that are individually associated with the respective spectral phase encoder. These encoded data signals are combined and code-scrambling by a spectral phase scrambler using a scramble code as an encryption key to generate an encrypted signal. A receiver reverses the encryption to extract the data.