This invention is a frequency shifter for receiving an optical carrier signal input and producing an output including a sideband that is shifted in frequency from the carrier. The frequency shifter includes an optical waveguide formed in a substrate of an electro-optically active material such as lithium niobate. A plurality of electrodes formed on the substrate cooperate with a signal generator to apply two perpendicular electric fields to the optical waveguide. The resultant of the two fields is a rotating electric field which produces a rotating birefringence in the optical waveguide. The rotating birefringence acts as a rotating wave plate, which shifts the frequency of optical signals input to the optical waveguide. The wave plate is preferably a half wave plate, which converts all of the input optical energy into the sideband.