In order to reduce the cost for delivering future broadband services, network operators are inclined to simplify the network architectures by integrating the metro and access networks into a single system. Hence, extended reach passive optical networks (ER-PONs) have been proposed. ER-PON usually has four new features: high data rate in both upstream and downstream signals (>1 Gb/s); reach extension to >100 km; a high split ratio (>100); and using wavelength division multiplexing (WDM). In this work, we propose and demonstrate a highly spectral efficient ER-PON using 4 Gb/s OFDM-QAM for both upstream and downstream signals, while achieving a high split-ratio of 256. The ER-PON employs optical components optimized for GPON (bandwidth of ∼1GHz) and reaches 100 km without dispersion compensation. Numerical analysis using 16, 64 and 256-QAM OFDM are also performed to study the back-to-back receiver sensitivities and power penalties at different electrical driving ratios.