Intensity modulation direct detection (IMDD) transmission scheme has been the mainstay in optical communication ever since semiconductor lasers were put to use as the choice transmission sources. With the development of new improved laser types, this method will continue to dominate the third generation light wave networks where bit rates have steadily risen beyond 10Gbps mark. The main attraction of this scheme lies in its simplicity. With EDFA amplifiers providing a cost effective solution to the attenuation problem, long haul network capacity under the scheme has greatly increased. At the design stage of such systems, it is essential to accurately predict the behavior of each system component right from the laser transmitter up to the optical receiver under custom specific operating conditions and laser diodes are one of the key components for a wide range of light wave communication systems. For this purpose, computer-aided simulation techniques based on behavioral models of laser diodes have been developed and validated for a variety of applications [4-8]. A ‘representative’ behavior model, which closely approximates the device’s actual physical model, is essential to the system designer. Unfortunately, the component vendor or manufacturer may not be able to provide all the information needed to predict such behavior. The only information that can be made available, are certain measured variables over a specified measurement range. The designer therefore, needs a tool to effectively convert this data into a useful model with sufficiently accurate parameters for predicting behavior. As the complexity of the model increases, more detailed knowledge of the laser is required and the computation time for system performance calculation increases. While sophisticated models provide considerable insight into important characteristics of the lasers, for system simulation purposes a relatively simple model is often adequate. In this thesis we will propose a very robust and efficient procedure for estimating the modal parameters and go on to propose a complete solution to the 0D laser model extending to such domains as the below threshold dynamics and temperature effects. / Thesis / Master of Engineering (ME)