There has been much interest in the non-linear frequency-division multiplexing (NFDM) transmission scheme in the optical fibre communication system. Up to date, most of the demonstrated NFDM schemes have employed only single polarisation for data transmission. Employing both polarisations can potentially double the data rate of NFDM systems. We investigate in simulation a dual-polarisation NFDM transmission with data modulation on the b-coefficient. First, a transformation that facilitates the

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... ual-polarisation b-modulation was built upon an existing transformation. Second, the q_c- and b-modulation for dual-polarisation were compared in terms of Q-factor, spectral efficiency (SE), and correlation of sub-carriers. The correlation is quantified via information theoretic metrics, joint and individual entropy. The polarisation-multiplexed b-modulation system shows 1 dB Q-factor improvement over q_c-modulation system due to a weaker correlation of sub-carriers and less effective noise. Finally, the b-modulation system was optimised for high data rate, achieving a record net data rate of 400 Gbps (SE of 7.2 bit/s/Hz) over 12× 80 km of standard single-mode fibre (SSMF) with erbium-doped fibre amplifiers (EDFAs). Based on the above simulation results, we further point out the drawbacks of our current system and quantify the error introduced by the transceiver algorithms and non-integrability of the channel.