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An electro-optically (EO) modulated oxide-confined vertical-cavity surface-emitting laser (VCSEL) containing a saturable absorber in the VCSEL cavity is studied. The device contains an EO modulator section that is resonant with the VCSEL cavity. A type-II EO superlattice medium is employed in the modulator section and shown to result in a strong negative EO effect in weak electric fields. Applying the reverse bias voltages to the EO section allows triggering of short pulses in the device. Digital data transmission (return-to-zero pseudo-random bit sequence, 27–1) at 10 Gb/s at bit-error-rates well below 10−9 is demonstrated.

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