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We have developed a PCM optical transmission system that can transmit 24 NTSC video channels and 48 audio channels on a 2.4Gbps optical carrier. This equipment uses a newly developed multiplexing/demultiplexing LSI chip set featuring high speed, small size, and low power consumption. Allowable optical transmission loss of 25dB, S/Nuw of 50dB, DG of 3%, DP of 2°were achieved and no deterioration of quality was observed after transmission over 50 kilometers of single-mode fiber.