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We report on advances in vertical-cavity surface-emitting lasers (VCSELs) and vertical-cavity semiconductor optical amplifiers (VCSOAs) operating at 1.3 and 1.55 /spl mu/m. These devices have the potential to dramatically reduce manufacturing costs compared to traditional in-plane devices, while allowing for the possibility of producing integrated modules and arrays on wafer. A number of different technologies have been proposed and demonstrated for these devices. We discuss the different materials systems used for distributed Bragg reflectors (DBRs) and active regions. Recent designs and results are summarized. Wafer bonded VCSELs and VCSOAs are examined in detail.