A time-spreading and wavelength-hopping optical encoder spreads each pulse in a modulated optical pulse signal into a predetermined pulse train including pulses with different wavelengths. The last pulse in the pulse train is delayed from the first pulse in the pulse train by an interval that is longer than the pulse period of the modulated optical pulse signal. Interference is avoided by dividing the pulse train into successive delay groups that are equal in length to the pulse period of the modulated data pulse signal, and having each wavelength appear in only one delay group. If encoders producing differently structured pulse trains are used in an optical multiplexer, interference is avoided by having the same wavelength appear only at different positions within the delay groups of different pulse trains. Long delays can be used to multiplex a relatively large number of channels, even at high transmission rates.