This paper describes the design, fabrication, and performance of a novel Ti:LiNbO3 optical modulator with a two-stage coplanar waveguide electrode for 40 Gbit/s optical transmission systems. The structure consists of a thin lower electrode and a thick upper electrode in conjunction with a ridge structure. The lower electrode ensures low voltage and the upper layer provides good microwave characteristics. Based on simulation results, a fully-packaged module was fabricated. The measured 3-dB electrical bandwidth is 30 GHz with a half-wave voltage of 2. 9 V.