An optical modulator is disclosed. The modulator is based upon an ARROW waveguide, consisting of a substrate, a lower cladding, an interference layer, and a core layer. An electronic element is formed in the structure to control the free-carrier concentration in the interference layer. The light is coupled by grating into the interference layer, where the free-carrier concentration is controlled by the element, which in turn controls the modulation of the light in the interference layer before it is coupled back to the core layer.