Optical-fiber multi-level PCM transmission system is investigated on the transmission distance and bit rate. A communication channel is established as follows: a light signal is modulated in intensity with a completely-balanced M-Ievel code at a transmitter, and is propagated over an optical glass fiber, and is demodulated at a receiver where the signal with an additive noise is processed through a PD, an equalizing amplifier, a matched filter, (M-l) comparators and a decision circuit. The relative power of the noise from the amplifier is increased in accordance with the reciprocal of fiber's transmittance, where shot noise and thermal noise are smoothed and decreased in power by the matched filter. The relation between the BER and the SNR leads the transmission distance. The product of the transmission distance and bit rate takes the large maximum at the large values of SNR and M. The large value of M is suitable for low-speed and high-rate system, and the interference system.