Although optoelectronic components are used widely in the telecommunications industry, this technology has barely touched the potential of what could be vast markets in broadband local loop and computer interconnection applications. The reliability, performance and particularly the cost of optoelectronic components must be improved for these applications to develop. Issues involving component packaging to a large extent determine the level to which these application criteria are met.1 This paper explores advances in semiconductor laser packaging that are aimed at reaching levels of component integration required for extensive use of optoelectronics in computer and communications systems applications.