Laser communications systems use lasers to transmit data through free space instead of fiber optic cables. They require line-of-sight between a transmitter and receiver. The transmitter includes a laser diode and signal processing, while the receiver has a telescope, detector, and signal processor. Modulation techniques include AM, PWM, and PFM. Advantages over radio frequency include higher bandwidth, directability, and security from a narrow beam. Applications include satellite links, underwater networks, and space communications where fiber is impractical.