Narrow-beam and low threshold current characteristics have been realized for a 1.3 µm FS-BH (Facet Selective growth Buried Heterostructure) laser diode monolithically integrated with a tapered waveguide lens by a selective area epitaxial growth technique. The beam divergences in the perpendicular and horizontal directions have been reduced down to about 12. By the introduction of the strained quantum well structure and the optimized cavity structure, the threshold current has been kept as low as 6 mA which is comparable to the conventional Fabry-Perot laser diodes. Even at high temperature as high as 85, the threshold current and the operation current (P=10 mW) have been suppressed to as low as 23 mA and 63 mA, respectively. Furthermore error-floor-free characteristics for 622 Mbps-50 km transmission have been confirmed under severe optical feedback condition.