This Small Business Innovation Research (SBIR) Phase I project will develop a pulse measurement device intended to fully characterize optical pulses used in fiber optic telecommunication systems. Next generation optical networks will use 40 Gbit/s rates requiring pulse widths of less than ~25 picoseconds. At this pulse width, dispersion compensation is required to obtain transmission distances of greater than 25 km. In addition, nonlinear optical effects will complicate system development by adding intensity-dependent dispersion. Optical network designers are anticipating these problems by developing active dispersion compensation. However, a requirement of active dispersion compensation is accurate measurements of pulse intensity and phase within an optical network. Then, corrections to the dispersion compensation can be determined exactly. A pulse characterization device is proposed that will be self-contained, have only one fiberized input, be rugged and easy to use.<br/><br/>This technology has commercial potential as a diagnostic for telecommunications research and as a diagnostic for optical network design. As optical networks move beyond the OC-192 standard, active dispersion compensation will be required. This technology can used in research applications and can be part of a feedback mechanism to actively control dispersion in functioning optical networks.