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In the paper, the self-consistent optical-electrical-thermal-gain threshold model of the oxide-confined (OC) quantum-dot (QD) (InGa)As-GaAs vertical-cavity surface-emitting diode laser (VCSEL) is demonstrated. The model has been developed to enable better understanding of physics of an operation of GaAs-based OC QD VCSELs in a full complexity of many interactions in its volume between individual physical phenomena. In addition, the model has been applied to design and optimize the low-threshold long-wavelength 1.3-μm GaAs-based OC QD VCSELs for the second-generation optical-fiber communication systems and to examine their anticipated room-temperature (RT) performance. An influence of many construction parameters on device RT lasing thresholds and mode selectivity has been investigated. Some essential design guidelines have been proposed to support efforts of technological centers in producing low-threshold single-mode RT devices.