We describe an erbium fiber laser that is passively mode locked by a novel,
precision antireflection-coated semiconductor saturable-absorber mirror th
at incorporates an additional two-photon absorber. It is shown that passive
mode locking evolves from a Q-switching instability. The results are achie
ved by use of saturable absorbers that provide a large (15%) nonlinear (sat
urable) loss. Exploiting two-photon absorption can substantially reduce the
peak power of the Q-switched pulses, which results in improved reliability
of the laser. Moreover, two-photon absorption can be used to produce an op
timal stability range for saturable-absorber mode locking. (C) 1999 Optical
Society of America.