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The transmission speed of optical waveguides is superior to microwave waveguides because optical devices have a much higher operating frequency than microwaves, enabling a far higher bandwidth. Single-mode step-index fibers are used for long-haul (even transoceanic) communication, whereas both graded-index (GRIN) and step-index multimode fibers are used for short-distance communication, for example, within institutions and university campuses and buildings.

For almost all commercial optical fiber types, the design consists of a concentric layer structure with the inner layer(s) forming the core and the outer layer(s) forming the cladding. Since the core has a higher refractive index than the cladding, guided modes can propagate along the fiber.