  We discuss excess noise contributions of a practical balanced homodyne
detector in Gaussian-modulated coherent-state (GMCS) quantum key distribution
(QKD). We point out the key generated from the original realistic model of GMCS
QKD may not be secure. In our refined realistic model, we take into account
excess noise due to the finite bandwidth of the homodyne detector and the
fluctuation of the local oscillator. A high speed balanced homodyne detector
suitable for GMCS QKD in the telecommunication wavelength region is built and
experimentally tested. The 3dB bandwidth of the balanced homodyne detector is
found to be 104MHz and its electronic noise level is 13dB below the shot noise
at a local oscillator level of 8.5*10^8 photon per pulse. The secure key rate
of a GMCS QKD experiment with this homodyne detector is expected to reach
Mbits/s over a few kilometers.
