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We analyze the modulation speed of an InGaAs-InP quantum-wire laser of a V-groove-shaped structure. The bandwidth is affected by the optical confinement Γ, exhibiting a maximum at Γ=0.016. The maximum bandwidth for the intrinsic device is 20 GHz as a result of a calculation based on the experimentally obtained cross section of the device and including the nonparabolicity of the conduction and valence bands. We discuss the reduction of the bandwidth of the device itself by summarily considering the influence of the roll-off time and the cavity length as well as the nonlinear gain suppression.