The rising demand for high bandwidth transmission capability link along with security and ease in installation has led to the interest in optical-wireless communication technology. In this paper an efficient and cost effective bi- directional RoF system with remote modulation using a reflective semiconductor optical amplifier (RSOA) is proposed. The system is capable of delivering a data rate up to 1 Gbps per cell in indoor environment .Since this proposed system uses optical sources only for downlink transmission, it simplifies the base station design and reduces overall system cost. Good transmission performance estimated by eye diagram is obtained in this proposed system.