An innovative non-mechanical and low power consumption tunable external cavity laser (ECL) using liquid crystal tuning elements is proposed. This contains a gain chip, a collimating lens, tuning elements and a partial-reflection mirror. The proposed tunable ECL can achieve both coarse tuning and fine tuning, and it is designed to lase at wavelength matching the International Telecommunication Union (ITU) channels, which is one of the important requirements in optical communication. The tuning elements include an ITU etalon, a liquid crystal Fabry-Pe´rot interferometer (LC-FPI) and a fine tuner. Only two parameters are required to tune the wavelength over the whole C-band, namely the voltage over the LC-FPI and the fine tuner. This high reliability cost-effective design proposes a theoretical tuning range of about 80 nm. The LC tuning elements including LC-FPI and fine tuner has been fabricated and tested.