A novel clock distribution concept based on inband phase-modulated pilot insertion is demonstrated. This method avoids the need for an ultrafast phase comparator and a phase-locked loop in the receiver. Experimental results show that the clock can be successfully extracted from 160 Gbit/s optical time-division multiplexing (OTDM) data signal and employed for demultiplexing of 40 Gbit/s tributaries. The in-band clock distribution introduces 1.5 dB of power penalty with an error-free performance.