We report a detailed investigation on the effect of semiconductor laser phase noise on the achievable frequency stability when locked to a Mach-Zehnder interferometer fringe. We show that the modulation-demodulation operation produces in the presence of laser phase noise two kinds of excess noise, which could be much above the shot noise limit, namely: conversion noise (PM-to-AM) and intermodulation noise. We show that in typical stabilization conditions, the frequency stability of the locked laser is limited by the intermodulation excess noise. This effect, reported initially in the microwave domain, can be considerably reduced by a convenient choice of the modulation frequency. To our knowledge, this is the first time such a phenomenon is reported in the optical domain.
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