As demand for higher bandwidth is drastically increasing, bandwidth efficiency is going to be an issue in Passive Optical Networks (PONs). Moreover, network operators plan to reduce the number of central offices (COs) while extending the reach of the optical links, this enables them to reduce the deployment costs. This paper demonstrates the advantages of advanced modulation formats and a suitable configuration for the power budget enhancement of hybrid Wavelength Division Multiplexing-Time Division Multiplexing-Passive Optical Networks (WDM-TDM-PONs). The proposed technique can offer higher data rate, better bandwidth efficiency, and large number of customers. Differential (Quadrature) Phase Shift Keying (DQPSK) signals and Orthogonal Frequency Division Multiplexing (OFDM) will be considered. Simulations are performed using different modulation formats to evaluate the behavior of the proposed PON extender. Finally, Transmission of 1 Tbps WDM/TDM-OFDMPON over 60 km optical link is presented here. The simulation results, prove that 1600 users can be covered with 40 Gbps peak data rate.