This paper demonstrates a novel architecture of hybrid subcarrier multiplexing Wavelength Division Multiplexing network combining laser and light emitting diodes (LED) as the light sources. The performances are simulated using Optisys software and analyzed based on bit error rates (BER) and the eye pattern of the received signals. Results proved that the combination of the laser and LED light sources in one system can be considered an effective way to maximize system capacity and at the same time, reduce implementation cost of hybrid SCM WDM network architecture. © 2012 IEEE.