With the advent of the coherent age the implementation of massive digital signal processors (DSP) co-integrated with high speed AD and DA converters became feasible allowing for the realization of huge flexibility of transponders. Today the implementation of variable transponders is mainly based on variable programming of DSP to support different modulation formats and symbol rates. Modulation formats with high flexibility are required such as pragmatic QAM formats and hybrid modulation formats. Furthermore, we report on an implementable probabilistically shaping technique allowing for adjusting the bitrate. We introduce fundamental characteristics of all modes and describe basic operation principles. The modifications of the operational modes are enabled simply by switching between different formats and symbol rates in the DSP to adjust the transponders spectral efficiency, the bitrate and the maximum transmission distance. A fine granularity in bitrate and in maximum transmission distance can be implemented especially by hybrid formats and by probabilistically shaped formats. Furthermore, latter allow for ~+25% increase of the maximum transmission distance due their operation close to the Shannon limit as a consequence of their 2D Gaussian like signal nature. If the flexibility and programmability of transponders is implemented, it can be utilized to support different strategies for the application. The variability in symbol rate is mainly translated into variability in bitrate and in bandwidth consumption. Contrary the variable spectral efficiency translates into a variation of the maximum transmission reach and of the bitrate. A co-adjustment of both options will lead to a superior flexibility of optical transponders to address all requirements from application, transponder and fiber infrastructure perspective.
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