At the receiving end, the module converts the light back into electrical signals for processing. Lasers are used for longer distances and higher speeds, while LEDs. It is processed by an internal driver chip, which drives a semiconductor Laser Diode (LD) or Light Emitting Diode (LED) to emit a modulated optical signal at the corresponding rate. The key components inside an optical module include: Laser Diode. The Transmitter Optical Sub Assembly (TOSA) is responsible for the emission of light. LD is suitable for long-distance, high-speed transmission, while LED is used for short-distance, low-speed applications.