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In this study we report a novel strained InGaAsP/InGaAsP/InAsP multiquantum well structure for electroabsorption modulators giving high power saturation together with polarization insensitivity. A careful design of the structure in terms of band‐gap engineering has been performed to fulfil both requirements. The polarization sensitivity is less than 0.5 dB for the on‐state and for a wide range of wavelengths. The carrier escape time, even at very low field, is estimated at lower than 20 ps. The transmitted power for different wavelengths is linear up to 16 dBm. © 1996 American Institute of Physics.