Optical interfaces have been recently standardized as the main physical layer interfaces for most short length optical communication systems, such as IEEE802.3ae, OIF-VSR, and the Fiber Channel. As interface speed increases, the requirements for forecasting the optical characteristics of direct modulated laser diodes (LDs) also increase because those standards define the specifications for physical layers with optical domains. In this paper, a vertical-cavity surface-emitting laser (VCSEL) equivalent electronic circuit model is described with which designers can simulate the I-L-V, S-parameter, and transient characteristics of LDs on a circuit simulator by improving convergence. We show that the proposed VCSEL model can model an 850-nm bandwidth VCSEL with 10-Gbps operation.