A laser transmitter within an optical transceiver includes a heating element. The heating element is coup led to the laser package and is controlled to allow the laser to be heated to a higher temperature than the ambient temperature when low environmental temperature extremes occur. The transmitter includes a semiconductor laser having an optimal operational temperature range, a laser driver circuit coupled to the laser that provides a modulation current and a bias current to drive the laser, a heating element thermally coupled to the laser and a heating control circuit that monitors the bias current applied to the laser for drops in bias current that are indicative of drops in the surrounding ambient temperature. In response to a drop in bias current, the control circuitry energizes the heating element to provide heat to the laser.