This paper presents the evaluation of gain, Amplified Spontaneous Emission (ASE), noise figure depending on the different Erbium Doped Fiber Amplifier (EDFA) and input signal parameters which are simulated in 10 Gbit/s single channel fiber optic transmission system with 1550 nm wavelength. The obtained results show that the EDFA amplification simultaneously depends on various parameters such as input signal power and wavelength, erbium-doped fiber length, pump laser directions and configurations. Furthermore, paper presents the realization of 10 Gbit/s 16 channel Dense Wavelength Division Multiplexing (DWDM) transmission system in C-Band transmission window with 50 GHz channel spacing, NRZ-OOK modulation format and implemented in-line EDFA amplifier with both co-propagation (980 nm) and counter-propagation (1480 nm) pump laser configuration in order to find optimal pumping lasers parameters for the maximum possible length of the transmission line with maximum Bit Error Ratio (BER) 10−9.