40‐GHz radio over fiber (ROF) downlink system is constructed with the dual‐sideband optical carrier suppression technique using Mach–Zehnder modulator. Small form pluggable (SFP) module is used as the optical source at the central station. 1.25‐Gbps data are directly modulated into the system via laser diode at the SFP. Several SFP modules are evaluated for their performance to be used in this system. The results show that all the SFP modules have shown their highest capability up to the bit error rate of 10−9 with about 1‐dB power penalty to realize the 20‐km error free 40‐GHz ROF downlink system. © 2014 Wiley Periodicals, Inc. Microwave Opt Technol Lett 56:900–903, 2014