An electrooptically induced optical waveguide can be formed by applying a DC voltage between electrodes fabricated on the surface of a crystal with strong electrooptic coefficients (for example, strontium barium niobate). Calculations of the refractive index profile and the optical mode size for such waveguides are presented. Approximate solutions for the fundamental mode are used to analyse the power coupling between a single-mode step-profile fibre and these waveguides. The power transmission losses in the straight and S-shaped waveguides are estimated by using a finite-difference beam propagation method (FD-BPM). The calculations predict that a new kind of modulator/switch can be realized with the induced waveguides. The important characteristics of these devices are discussed and compared with LiNbO3 optical waveguide modulators.