We present a single-channel 40 Gb/s transmission system with optical single-sideband modulation and alternate mark inversion signaling. Dispersion compensation is performed all-optically at the transmitter and receiver. Sideband suppression and dispersion compensation are simultaneously performed by fiber Bragg grating (FBG) optical filtering through amplitude and phase response, respectively. Different amounts of accumulated dispersion are compensated using an optical filter module (OFM) based on switching of FBGs with different dispersion. Linear transmission simulations to assess the OFM effectiveness yield a Q-factor penalty variation inferior to 1 dB relatively to back-to-back considering a maximum dispersion of 20400 ps/nm. A transmission distance of 1040 km of nonlinear standard single mode fiber is achieved with a Q-factor higher than 7.