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DWDM works well for fiber (point to point connectivity) but not for satellites where we have processing time (specially in satellites where satellites have onboard processing where the received signal of radio wave is broken down to intermediate frequencies down to base band, re-process, re-generate and send it back to intermediate frequency and then to an RF frequency for re- transmission back to earth) but there is no way that we can do all of this processing in the middle of our transmission. All of these processing takes time and unless you have Time division type of operation e.g. TDMA or CDMA.
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