In this paper, a simulation study of InGaAsP(well)/InGaAlAs(barrier) 1.55 µm strain-compensated multi-quantum well (MQW) lasers is presented. Due to a large conduction band discontinuity in this material system, a higher material gain and differential gain can be obtained from such a quantum well (QW) as compared to a traditional InGaAsP/InGaAsP quantum well. The deeper electron well should also improve elevated temperature operating characteristics and reduce the electron spillover from QWs. For MQWs, a uniform vertical distribution of holes is achieved due to a reduced effective hole confinement energy by optimizing the bandgap and the strain in the barriers. A large number of quantum wells can be uniformly pumped, reducing the carrier density in each individual well. A uniform and low carrier density in all the wells help reduce the total Auger recombination current. High p-doping in the active region is shown to enhance the carrier and gain non-uniformity in the MQWs. A simulated high modulation bandwidth has been demonstrated, promising directly modulated lasers as a low-cost source for short to medium distance (1-10 km) high speed optical links.