Higher information rates are achieved in lightwave communication systems by using optical signals of different polarizations to represent data as ternary digits. Each ternary digit assumes a value, for example, of either zero, logic 1 (e.g., an amplitude of one unit) on a first polarization, or logic 1 on a second polarization. The ternary digits are transmitted to a receiver through a single optical fiber by modulating the optical signals in time with one of these two polarizations or zero. The receiver determines the value of each ternary digit by determining that the received optical signal has a value of either zero or logic one on a particular one of the two polarizations.