A coherent optical link includes a laser master oscillator operative to generate an amplitude- and phase-stable narrow linewidth optical carrier, a first programmable read-only memory (PROM) having an input for receiving and encoding an M-ary data word, a first digital-to-analog (D/A) converter operative to obtain the amplitude-encoded M-ary data word and output a corresponding analog signal, a Mach-Zehnder intensity modulator that obtains the analog signal and intensity-modulates the carrier based on the analog signal, an optical phase modulator having an input, and an optical waveguide that connects the Mach-Zehnder intensity modulator to the input of the optical phase modulator. The Mach-Zehnder intensity modulator and optical phase modulator may be formed into a single package. A modulation method includes modulating an intensity of an optical signal using a Mach-Zehnder intensity modulator, and then modulating the phase of the intensity-modulated optical signal.