An electromagnetic instrument transformer is a common device used to measure large current values in high-voltage electrical networks; it has been in use for more than a century. However, the optical current transformer, a promising technology also known as a fiber optic current sensor (FOCS), offers increased safety and ease of operation, as well as the absence of errors caused by the magnetic circuit of legacy transformers. Although the FOCS scheme is well known and has been actively developed for over a quarter century, it has certain disadvantages that limit its use. This paper describes the authors’ efforts to solve these problems in order to make FOCS technology competitive and widely adopted. We upgraded the FOCS optical circuit, expanded the frequency band of the captured current signal, and reduced the solution’s cost. We designed new signal processing algorithms to compensate for errors caused by internal factors in the measurement circuit, as well as those caused by environmental influences. We developed an FOCS computer model based on the Jones matrix formalism to enhance the experimental debugging. It allowed us to define the requirements for elements of the optical circuit and its production accuracy.