A fiber-optic transmission system for linking radio base stations to the mobile communication center is developed, and its performance is evaluated. The introduction of this system yields two main improvements: optimum zone allocation to increase radio frequency utilization efficiency and the elimination of service quality issues such as dead zones and traffic imbalance. Being optical, the system suffers from the interferometric noise and distortion created by multiple reflections within the fiber. Moreover, because system response is much different from that of optical CATV systems, we clarify the optical parameter selection criteria and hypothetical return loss model for an embedded fiber infrastructure. An optical multiplexing method is also introduced that reduces the quantity of fiber and connectors, as well as splicing and cable installation costs. A new ternary optical multiplexing architecture combined with a cost-effective self-tuning type WDM technique and a high isolation type circulator are proposed for the 1.3µm wavelength region. The performance of low distortion high power common amplifiers is measured with the aim of reducing the size and weight of back-up batteries, and to improve the packaging density of the typical base station.