A method of converting an optical communications signal having a differentially encoded multilevel modulation format into communications traffic bits, the multilevel modulation format having a plurality of constellation points, the method comprising: receiving a consecutive pair of symbol signals of said optical communications signal, the pair of symbol signals being arranged to differentially encode a plurality of communications traffic bits; and generating a plurality of optical binary signals in dependence on the symbol signals, each optical binary signal having a respective binary signal level, wherein the optical binary signals form optical versions of the encoded communications traffic bits.