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This paper proposes a novel Internet Protocol (IP) traffic transmission over multiple array (M-ary) Frequency Shift Keying Optical Code-Division Multiple-Access (FSK-OCDMA) local area network (LAN). The transceiver also enjoys the co-channel interference canceller. The network performance has been analyzed and compared with common incoherent Pulse-Position Modulation (PPM). The results indicate that this architecture is very power efficient and enhances the network capacity. It is shown that for a maximum bit-rate, the network performance can be improved by reducing the channel utilization. Since each IP packet is buffered only at the edge of this network, the buffer delay is considerably reduced.
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