This specification discloses a VCSEL (Vertical-Cavity Surface-Emitting Laser) device with single-mode output and optionally single polarization output. This device is given by lateral mode confinement by the PBG (Photonic Band-Gap) effect by shallow etching in a partial VCSEL top mirror. The PBG area encircles a MS-region (Mode-Shaping region), which is characterized by large longitudinal mode losses. The MS-region encircles the LA-region (Light Aperture region), which is characterised by low longitudinal mode losses. The MS-region does not contribute to the lateral mode-confinement to the LA-aperture, and the lateral modes confined by the PBG area. The VCSEL is thus optimized for single fundamental mode operation.