An active optical device with reduced axial carrier depletion is disclosed. This active optical device includes a substrate layer; a p-doped active layer coupled to the substrate, a semiconductor layer coupled to the active layer, an electrical contact coupled to the substrate layer, and an electrical contact coupled to the semiconductor layer. The p-doped active layer has a central interaction region and a transverse diffusion region. The transverse diffusion region supplies additional carriers to the central interaction region in response to carrier depletion in the central interaction region caused by the interaction of the carriers with a light beam. Also a method of operation and a method of manufacture for the active optical device is disclosed.