Shannon capacity of nonlinear regenerative channels

We compute Shannon capacity of nonlinear channels with regenerative elements. Conditions are found under which capacity of such nonlinear channels is higher than the Shannon capacity of the classical linear additive white Gaussian noise channel. We develop a general scheme for designing the proposed channels and apply it to the particular nonlinear sine-mapping. The upper bound for regeneration efficiency is found and the asymptotic behavior of the capacity in the saturation regime is derived.