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Fiber optics is a major building block in the telecommunication infrastructure. Its high bandwidth capabilities and low attenuation characteristics make it ideal for gigabit transmission and beyond. The uses of optical fiber today are quite numerous due to the explosion of information traffic such as the Internet, electronic commerce, computer networks, multimedia, voice, data, and video. In the present paper, the optical fiber structure and the operation mechanism for multimode and single modes are analyzed. The design parameters such as core radius, numerical aperture, attenuation, dispersion and information capacity for step index and graded index fibers are studied, calculated and compared for different light sources.