We consider the problem of building a communication channel based on modulation of terahertz pulses. Given the constrained propagation properties of this spectrum, one of our goals is to determine the potential data rates achievable for different environmental conditions. To do this, we first present a detailed channel model based on measurements carried out on a terahertz time-domain system. We next simulate frequency-domain differential quadrature phase shift keying (FD-DQPSK) and Adaptive FD-DQPSK pulse modulation schemes. Finally, we simulate communication for different cities in winter and summer seasons where the primary channel impairment includes humidity. We show that data rates of well over 1 Tbit/s are achievable for all cases for distances of up to three meters. We also examine the error behavior of this transmission channel as a function of humidity and frequency band.
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