VCSELs operating at 1.3 microns are the ideal laser source for meeting the exploding demand for bandwidth in local area and metro area networks. NCSELs will eventually replace the vast majority of 1.3 micron FP and DFB edge emitting lasers currently used in these applications, since they offer lower manufacturing cost, on wafer testability, extremely narrow linewidth, a circular output beam, high speed direct modulation, and the ability to be integrated into arrays. The primary challenge in 1.3 micron VCSELs has been to find an active region material that can be grown directly on high thermal conductivity and high reflectivity GaAs/AlGaAs distributed Bragg reflectors DBRs. In this work, we have developed MBE grown InGaAsN quantum wells that can be grown directly on GaAs substrates and integrated directly into high performance oxide VCSEL structures. We have demonstrated record room temperature CW single mode output powers in excess of 1 mW at an emission wavelength of 1287 nm. CW lasing has been observed as high as 125 degree(s)C, illustrating the excellent thermal performance of both the InGaAsN quantum wells and the GaAs/AlGaAs DBRs. Open eye diagrams were observed at 10 Gb/s, paving the way for OC-192 SONET and 10 Gb/s Ethernet applications.