A modulator device for converting digital data into modulation of an optical signal includes an electronic input for receiving an input data word of N bits and an electrically controllable modulator for modulating the intensity of an optical signal, the modulator including M actuating electrodes where M≧N. An electrode actuating device, most preferably a digital-to-digital converter, operates actuating electrodes so that at least one electrode is actuated as a function of values of more than one bit of the input data word. According to an alternative, or supplementary, aspect of the invention, the set of electrodes includes at least one electrode having an effective area which is not interrelated to others of the set by factors of two. In one preferred implementation, a Mach-Zehnder modulator also provides phase modulation to give QAM functionality. Another implementation employs a semiconductor laser.