High bit rate, all-optical long-distance transmission could be created through the combined use of loss-compensating gain in erbium-doped fibers and solitons. A detailed analysis of the distributed erbium-doped fiber, including the spectral-gain dependency, is combined with an optimum design of the transmission fiber and general bit-error-rate calculations. Changes in wavenumber, group velocity, and fiber dispersion due to erbium doping in a single-mode fiber are evaluated, and a reduction in bit-error rates due to the erbium spectral-gain profile is shown. Transmission through distributed erbium-doped fiber with 100-km separation between each pump-power station is shown, with a total bit-rate distance product of 55 Gb/s · Mm