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A novel clock distribution concept based on inband phase-modulated pilot insertion is demonstrated.This method avoids the need for an ultrafast phase comparator and a phase-locked loop in the receiver.Experimental results show that the clock can be successfully extracted from 160Gbit/s optical time-division multiplexing (OTDM) data signal and employed for demultiplexing of 40Gbit/s tributaries.The in-band clock distribution introduces 1.5dB of power penalty with an error-free performance.