Fiber-optic communication is a method of transmitting information from one place to another by sending pulses of light through an optical fiber. The light forms an electromagnetic carrier wave that is modulated to carry information. First developed in the 1970s, fiber-optic communication systems have revolutionized the telecommunications industry and have played a major role in the advent of the Information Age. Because of its advantages over electrical transmission, optical fibers have largely replaced copper wire communications in core networks in the developed world.
The process of communicating using fiber-optics involves the following basic steps: Creating the optical signal involving the use of a transmitter, relaying the signal along the fiber, ensuring that the signal does not become too distorted or weak, receiving the optical signal, and converting it into an electrical signal.
Optical fiber is used by many telecommunications companies to transmit telephone signals, Internet communication, and cable television signals. Due to much lower attenuation and interference, optical fiber has large advantages over existing copper wire in long-distance and high-demand applications. However, infrastructure development within cities was relatively difficult and time-consuming, and fiber-optic systems were complex and expensive to install and operate. Due to these difficulties, fiber-optic communication systems have primarily been installed in long-distance applications, where they can be used to their full transmission capacity, offsetting the increased cost. Since 2000, the prices for fiber-optic communications have dropped considerably. The price for rolling out fiber to the home has currently become more cost-effective than that of rolling out a copper based network. Prices have dropped to $850 per subscriber in the US and lower in countries like The Netherlands, where digging costs are low.

Since 1990, when optical-amplification systems became commercially available, the telecommunications industry has laid a vast network of intercity and transoceanic fiber communication lines. By 2002, an intercontinental network of 250,000 km of submarine communications cable with a capacity of 2.56 Tb/s was completed, and although specific network capacities are privileged information, telecommunications investment reports indicate that network capacity has increased dramatically since 2002.
In 1966 Kao and Hockham proposed optical fibers at STC Laboratories (STL), Harlow, when they showed that the losses of 1000 db/km in existing glass (compared to 5-10 db/km in coaxial cable) was due to contaminants, which could potentially be removed.

Optical fiber was successfully developed in 1970 by Corning Glass Works, with attenuation low enough for communication purposes (about 20dB/km), and at the same time GaAs semiconductor lasers were developed that were compact and therefore suitable for transmitting light through fiber optic cables for long distances.

After a period of research starting from 1975, the first commercial fiber-optic communications system was developed, which operated at a wavelength around 0.8 µm and used GaAs semiconductor lasers. This first-generation system operated at a bit rate of 45 Mbps with repeater spacing of up to 10 km. Soon on 22 April, 1977, General Telephone and Electronics sent the first live telephone traffic through fiber optics at a 6 Mbps throughput in Long Beach, California.

The second generation of fiber-optic communication was developed for commercial use in the early 1980s, operated at 1.3 µm, and used InGaAsP semiconductor lasers. Although these systems were initially limited by dispersion, in 1981 the single-mode fiber was revealed to greatly improve system performance. By 1987, these systems were operating at bit rates of up to 1.7 Gb/s with repeater spacing up to 50 km.

The first transatlantic telephone cable to use optical fiber was TAT-8, based on Desurvire optimized laser amplification technology. It went into operation in 1988.

Third-generation fiber-optic systems operated at 1.55 µm and had losses of about 0.2 dB/km. They achieved this despite earlier difficulties with pulse-spreading at that wavelength using conventional InGaAsP semiconductor lasers. Scientists overcame this difficulty by using dispersion-shifted fibers designed to have minimal dispersion at 1.55 µm or by limiting the laser spectrum to a single longitudinal mode. These developments eventually allowed third-generation systems to operate commercially at 2.5 Gbit/s with repeater spacing in excess of 100 km.

The fourth generation of fiber-optic communication systems used optical amplification to reduce the need for repeaters and wavelength-division multiplexing to increase data capacity. These two improvements caused a revolution that resulted in the doubling of system capacity every 6 months starting in 1992 until a bit rate of 10 Tb/s was reached by 2001. Recently, bit-rates of up to 14 Tbit/s have been reached over a single 160 km line using optical amplifiers.

The focus of development for the fifth generation of fiber-optic communications is on extending the wavelength range over which a WDM system can operate. The conventional wavelength window, known as the C band, covers the wavelength range 1.53-1.57 µm, and the new dry fiber has a low-loss window promising an extension of that range to 1.30-1.65 µm. Other developments include the concept of "optical solitons, " pulses that preserve their shape by counteracting the effects of dispersion with the nonlinear effects of the fiber by using pulses of a specific shape.

In the late 1990s through 2000, industry promoters, and research companies such as KMI and RHK predicted vast increases in demand for communications bandwidth due to increased use of the Internet, and commercialization of various bandwidth-intensive consumer services, such as video on demand. Internet protocol data traffic was increasing exponentially, at a faster rate than integrated circuit complexity had increased under Moore's Law. From the bust of the dot-com bubble through 2006, however, the main trend in the industry has been consolidation of firms and offshoring of manufacturing to reduce costs. Recently, companies such as Verizon and AT&T have taken advantage of fiber-optic communications to deliver a variety of high-throughput data and broadband services to consumers' homes.