Quantum key distribution using nonclassical photon-number correlations in macroscopic light pulses

We propose a scheme for quantum key distribution using macroscopic nonclassical pulses of light having of the order 10(6) photons per pulse. Sub-shot-noise quantum correlation between the two polarization modes in a pulse gives the necessary sensitivity to eavesdropping that ensures the security of the protocol. We consider pulses of two-mode squeezed light generated by a type-II seeded parametric amplification process. We analyze the security of the system in terms of the effect of an eavesdropper on the bit error rates for the legitimate parties in the key distribution system. We also consider the effects of imperfect detectors and lossy channels on the security of the scheme.