This paper studies the capacity of the two-user intensity-modulation/direct-detection (IM/DD) interference channel (IC), which is relevant in the context of multi-user optical wireless communications. Despite some known single-letter capacity characterizations for general discrete-memoryless ICs, a computable capacity expression for the IM/DD IC is missing. In this paper, we provide tight and easily computable inner and outer bounds for a general two-user IM/DD IC under peak and average optical intensity constraints. The bounds enable characterizing the asymptotic sum-rate capacity in the strong and weak interference regimes, as well as the generalized degrees of freedom (GDoF) in the symmetric case. Using the obtained bounds, the GDoF of the IM/DD IC is shown to have a ‘W’ shape similar to the Gaussian IC with power constraints. The obtained bounds are also evaluated numerically in different interference regimes to show their tightness, and used to study the performance of on-chip and indoor OWC systems.

Optical orthogonal frequency division multiplexing (O-OFDM) schemes are variations of OFDM schemes which produce non-negative signals. Asymmetrically-clipped O-OFDM (ACO-OFDM) is a single-layer O-OFDM scheme, whose spectral efficiency can be enhanced by adopting multiple ACO-OFDM layers or a combination of ACO-OFDM and other O-OFDM schemes. However, since symbol detection in such enhanced ACO-OFDM (eACO-OFDM) is done iteratively, erroneous detection leads to residual clipping noise (RCN) which can degrade performance in practice. Thus, it is important to develop an accurate model for RCN which can be used to design RCN-aware eACO-OFDM schemes. To this end, this paper provides a mathematical analysis of RCN leading to an accurate model of RCN power. The obtained model is used to analyze the performance of various eACO-OFDM schemes. It is shown that the model provides an accurate evaluation of symbol error rate (SER), which would be underestimated if RCN is ignored. Moreover, the model is shown to be useful for designing an RCN-aware resource allocation that increases the robustness of the system in terms of meeting a target SER, compared to an RCN-unaware design.