The authors demonstrate a compact optical waveguide modulator based on a Mach-Zehnder interferometer driven by surface acoustic waves. The modulator was monolithically fabricated on GaAs with an active region length of approximately 15 m. It yields peak-to-peak modulation exceeding 90% of the average transmission and operation in the gigahertz frequency range. © 2006 American Institute of Physics. ͓DOI: 10.1063/1.2354411͔ Acousto-optic effects have been used for optical modulation for a long time, with the Bragg cells being probably the best known example. 1 The demand for fast and compact devices together with required phase matching, however, imposes several limitations on conventional acousto-optic devices in future generations of integrated photonics. Therefore, great attention has recently been devoted to alternative concepts for light modulation. A promising approach to increase the operation speed employs all-optical light control, which allows operation down to the subpicosecond time scales. 2 These devices are typically a few hundreds of microns long since they rely on optical nonlinearities that are usually small. An effective approach to reduce device dimensions employs photonic crystals ͑PhCs͒. Examples are thermo-optical switches based on a PhC Mach-Zehnder interferometer ͑MZI͒ with 12-m-long arms on AlGaAs/ GaAs system 3 as well as electro-optical switches based on carrier injection of 80-m-long silicon PhC-MZI. 4 In both cases the switching time is on the order of microseconds. Faster PhC-based all-optical switching devices have been realized in the ͑Al,Ga͒As system by taking advantage of the nonlinear properties of quantum dots embedded in the MZI arms. 5 PhC fabrication, however, requires a sophisticated technology with very strict tolerances.In this letter, we demonstrate a compact and monolithic modulator based on conventional ridge waveguides ͑WGs͒ on GaAs. The modulator consists of a MZI driven by a surface acoustic wave ͑SAW͒ in the gigahertz range, where the length of the interaction region between the acoustic and optical waves ͑the active region͒ is reduced to approximately 15 m. The design used, which is a modified version of the acousto-optic MZI proposed by Gorecki et al.,6 is based on the refractive index modulation of the interferometer arms by the wave fronts of a SAW propagating perpendicularly to the arms. The changes in refractive index are induced by the elasto-optic and electro-optic effects associated with the strain and piezoelectric fields, respectively. For photon energies away from electronic transitions-which is the case discussed here-the elasto-optical effect dominates. 7 The width of the WGs forming the arms is chosen to be much smaller than the acoustic wavelength ͑ SAW ͒ in order to ensure a constant modulation amplitude across the WG width. In our design, we introduce two fundamental modifications to increase the modulation efficiency and reduce the length of the active region. First, we enhance the modulation efficiency by modulating simultaneously both interferom...