Abstract: An externally modulated laser-based transmitter is disclosed which utilizes an automatic bias control (ABC) circuit to maintain the bias voltage applied to the external modulator at a predetermined level required to provide the necessary separation between logic levels. The ABC circuit generates a dither signal and functions to digitally compare the phase of the dither signal to the phase of the optical signal produced by the external modulator. A phase comparator (e.g., D-type flip-flop) is used to monitor any drift in the optimum bias point of the modulator and generate an output correction signal by continuously adjusting the level of the DC bias voltage applied to the external modulator.