An optical WDM star network consisting of three lasers transmitting at about 234 000 GHz, spaced by 300 MHz, has been used to demonstrate dense packing of WDM signals. The three optical signals, FSK-modulated at 45Mbit/s, are multiplexed by a 4 × 4 star coupler and demultiplexed by a balanced heterodyned receiver. Receiver sensitivity is -61dBm for a BER of 10−9, or 113 photons/bit, which is 4.5dB from the shot noise limit and represents the best sensitivity yet reported for FSK modulation. The results indicate that 100 000 users in a 10km radius could be interconnected with such a system.