Black Box Explains… WDM:

WDM (Wavelength Division Multiplexing), also known as DWDM (Dense Wavelength

Division Multiplexing), is a technology that combines many different data streams
for transmission over a single strand of fiber optic cable. A WDM multiplexor
gives each data stream (or channel) a separate light wavelength and then combines
the wavelengths into a single lightsteam for transmission over fiber.

WDM has the potential to transmit up to 80 channels with an aggregate bandwidth of

up to 200 billion bits per second.

One of the advantages of WDM technology is that different data formats can be
transmitted together. For instance, one fiber strand can be carrying Fast
Ethernet, ATM, and IP data at the same time.

WDM is expected to replace TDM (Time Division Multiplexing), the currently popular
technology for combining data streams over fiber cable.