A digital receiver is configured to process a polarization multiplexed carrier from a communication network. The polarization multiplexed carrier includes a first polarization and a second polarization. The receiver includes a first lane for transporting a first input signal of the first polarization, a second lane for transporting a second input signal of the second polarization, a dynamic phase noise estimation unit disposed within the first lane and configured to determine a phase noise estimate of the first input signal, a first carrier phase recovery portion configured to remove carrier phase noise from the first polarization based on a combination of the first input signal and a function of the determined phase noise estimate, and a second carrier phase recovery portion configured to remove carrier phase noise from the second polarization based on a combination of the second input signal and the function of the determined phase noise estimate.