Simultaneous transmission was achieved of 40 Gbps at baseband and 2.5 Gbps modulation on a 50 GHz subcarrier utilizing a single 40 Gbps light-intensity modulator. A novel reception method based on optically separated baseband and single sideband channel permits direct detection of both signals with use of bandwidth limited photodiodes and dispersion tolerant transmission. This method can be used to increase the total capacity of an original 40 Gbps optical link to also carry a secondary signal.