The feasibility of using solitary LDs as light sources for a Gbit/s range optical DPSK heterodyne detection system has been confirmed in 1. 2 Gbit/s transmission experiments. With monolithic external-cavity DFB LDs, a receiver sensitivity of minus 43 dbm and transmission over 152 km have been achieved. With conventional discrete external-cavity LDs, minus 45 dbm and 170 km have also been achieved.