An optical transmission network includes an optical transmitter photonic integrated circuit (TxPIC) chip, utilized in an optical transmitter and has a plurality of monolithic modulated sources integrated for multiple signal channels on the same semiconductor chip is provided with channel equalization at the optical receiver side of the network that permits one or more such integrated modulated sources in the TxPIC chip to be out of specification thereby increasing the chip yield and reducing manufacturing costs in the deployment of such TxPIC chips. FEC error counts at the FEC decoder on the optical receiver side of the network includes counters that accumulate a plurality of bit pattern-dependent error counts based on different N-bit patterns in the received data bit stream. The accumulated counts of different N-bit patterns are utilized to provide for corrections to threshold and phase relative to the bit eye pattern as well as provided for weight coefficients for the optical receiver equalization system. The deployment of this type of equalization in a digital OEO REGEN network substantially reduces, if not eliminates, the need for dispersion compensating fiber (DCF) or EDFAs in an optical link of the network and enhances the optical receiver tolerance to chromatic dispersion (CD) so that an increase in chip yield is realized for TxPIC chips not operating with acceptable operational parameters, particularly with a desired frequency chirp parameter relative to at least one of the TxPIC modulated sources.