Yes the fiber can handle huge bandwidths, but there are two major issues
with common "TOSLINK". 

One is the fiber itself, its a "multimode" fiber, its physically much
larger than a wavelength of the light used. The result is that light
entering the fiber at different angles can take different path lengths
(hence time delay through the fiber), the result is that edges get
stretched out in time. There are some interesting attempts at fixing
this, the most common one today uses a bundle of single mode fibers, so
whichever fiber the light ray hits, it takes the same amount of time
through the bundle. 

The other is the optical <-> electrical converters. 99.9% of the
industry just uses off the shelf TOSLINK transmitters and receivers.
For whatever reasons these are not very good parts, particularly the
receivers. They are slow and noisy. They have actually gotten worse
over time. Toshiba used to make some pretty good ones but they stopped
making them several years ago. (I think HDMI has pretty much killed off
the optical market and Toshiba couldn't make any money off of higher end
modules).

It is certainly possible to do MUCH better than the TOSLINK parts, BUT
none of those have the same connector. Quite a while back there was an
attempt to do this with the ST optical interface, but it never really
caught on. Until someone starts making a GOOD optical receiver with the
same TOSLINK connector not much is going to change. 

John S.


-- 
JohnSwenson
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