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This lecture covers the process of sampling analog signals to discrete values, following the Nyquist-Shannon sampling theorem. It explains the quantization of discrete values and their conversion to binary codes using pulse code modulation. The encoding of optical signals through polarization, amplitude, frequency, and phase is also discussed. Furthermore, it delves into analog and digital modulations such as amplitude-shift keying, frequency-shift keying, and phase-shift keying. The lecture explores signal modulation techniques like non-return-to-zero and return-to-zero, illustrating their impact on spectral density. Finally, it introduces the concept of eye diagrams for monitoring signal performance in optical communication systems.