We have developed the full theory of a synchronously pumped type I optical parametric oscillator (SPOPO). We derive expressions for the oscillation threshold and the characteristics of the generated mode-locked signal beam. We calculate the output quantum fluctuations of the device, and find that, in the degenerate case (coincident signal and idler set of frequencies), perfect squeezing is obtained when one approaches threshold from below for a well defined super-mode, or frequency comb, consisting of a coherent linear superposition of signal modes of different frequencies which are resonant in the cavity.
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