  In this paper, we study the feasibility of conducting quantum key
distribution (QKD) together with classical communication through the same
optical fiber by employing dense-wavelength-division-multiplexing (DWDM)
technology at telecom wavelength. The impact of the classical channels to the
quantum channel has been investigated for both QKD based on single photon
detection and QKD based on homodyne detection. Our studies show that the latter
can tolerate a much higher level of contamination from the classical channels
than the former. This is because the local oscillator used in the homodyne
detector acts as a "mode selector" which can suppress noise photons
effectively. We have performed simulations based on both the decoy BB84 QKD
protocol and the Gaussian modulated coherent state (GMCS) QKD protocol. While
the former cannot tolerate even one classical channel (with a power of 0dBm),
the latter can be multiplexed with 38 classical channels (0dBm power each
channel) and still has a secure distance around 10km. Preliminary experiment
has been conducted based on a 100MHz bandwidth homodyne detector.
