Coherent modulation goes beyond amplitude modulation by also modulating the phase and polarization of the signal. This allows more data to be transmitted at the same laser speed. However, coherent modulation requires more complex signal processing. Since it sends not just light amplitude (intensity) but a set of points (constellations), decoding this signal demands complex mathematical operations. Consequently, a Digital Signal Processor (DSP) with significant computing power is needed to perform these calculations.