For modern glass optical fiber, the maximum transmission distance is limited not by direct material absorption but by several types of dispersion, or spreading of optical pulses as they travel along the fiber. Dispersion in optical fibers is caused by a variety of factors. Intermodal dispersion, caused by the different axial speeds of different transverse modes, limits the performance of multi-mode fiber. Because single-mode fiber supports only one transverse mode, intermodal dispersion is eliminated.
In single-mode fiber performance is primarily limited by chromatic dispersion (also called group velocity dispersion), which occurs because the index of the glass varies slightly depending on the wavelength of the light, and light from real optical transmitters necessarily has nonzero spectral width (due to modulation). Polarization mode dispersion, another source of limitation, occurs because although the single-mode fiber can sustain only one transverse mode, it can carry this mode with two different polarizations, and slight imperfections or distortions in a fiber can alter the propagation velocities for the two polarizations. This phenomenon is called fiber birefringence and can be counteracted by polarization-maintaining optical fiber. Dispersion limits the bandwidth of the fiber because the spreading optical pulse limits the rate that pulses can follow one another on the fiber and still be distinguishable at the receiver.
Some dispersion, notably chromatic dispersion, can be removed by a 'dispersion compensator'. This works by using a specially prepared length of fiber that has the opposite dispersion to that induced by the transmission fiber, and this sharpens the pulse so that it can be correctly decoded by the electronics.
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