In order to put research and development of optoelectronic integrated circuits (OEICs) for fiber-optic telecommunications in perspective, the determinant issues and market forces driving the evolution of telecom networks are first briefly analyzed. Advanced transfer links require high-performance OEICs, whereas switching nodes call for compact solutions, and optical distribution to the subscriber will demand low cost components. A review of state-of-the-art InP OEIC technologies shows that OEIC receivers are now able to compete with hybrids in terms of performance, with both the HFET and the HBT being candidates for a generic OEIC technology, since high bit rate transmitter OEICs can also be made using these electronic devices, albeit with a more complex technology. Cost requirements will drive the realization of subscriber modules, which need more development of photonic integration technology before adjunction of electronic devices, especially to lasers. For the nearer term, hybrid flip-chip mounting of optoelectronic devices onto electronic ICs could prove to be an economically viable alternative, with challenging performances as well. Epitaxial lift-off has more remote and uncertain possibilities. For low cost OEIC components to ever reach the market, mass manufacturable packaging technologies need urgently to be developed.