In modern high speed optical communication networks, the long distance transmission is restricted due to dispersion which causes inter symbol interference. In the present study, the dispersion characteristics of various standard optical fibers like Alcatel 6900, Corning Submarine Leaf, Lucent All Wave 1310 and OFS TrueWave RS 1590 are analyzed. By using inverse dispersion fibers with negative dispersion which is inverse to that of the single mode fibers, it is attempted to construct an optical communication system with the desired zero dispersion. The dispersion characteristics of these fibers are analyzed. Inverse dispersion compensation technique is employed to combat dispersion and the performance is analyzed in terms of eye diagrams and bit error rates.