An optical communication system for generating and transmitting a modulated optical signal in which light emitted by a light source is modulated by an optical modulator in accordance with an input electrical signal. A bias signal generator applies a bias electrical signal to bias the optical modulator at a bias angle away from quadrature. The bias signal generator monitors the input electrical signal and adjusts the applied bias electrical signal in dependence on the input electrical signal. The system further includes a receiver which may include an equalizer coupled to the photodetector of the receiver.