What is the function of the bias-T?

The bias-T allows to apply a constant (DC) current to the laser in addition to the pulsed current (therefore a bias-T is useless in CW mode). The current is drawn from the external (user supplied) power supply through the laser.

This current can be controlled electrically. Alpes Lasers SA specifies use up to of 0.1kHz, but several clients have used the bias-T successfully at frequencies of up to several kHz.