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Modulation experimenting on a buried-stripe (b.s.) InGaAsP laser emitting at 1.3 μm was carried out up to 2 Gbit/s. The b.s. laser is free from relaxation oscillation, which degrades modulated optical pube waveforms, especially at high data rates. The repeater gain of 1.6 Gbit/s transmission systems is improved by 9 dB compared with previously reported experiments. Modulation characteristics up to 2 Gbit/s are reported.