We present the detailed analysis and characterization of a silicon Michelson modulator with short 500 μm phase shifters and a low VπLπ of 0.72 V-cm under reverse bias. We investigate optical modulation of reverse biased p-n and forward biased p-i-n junctions. We demonstrate for the first time that error-free operation up to 40 Gbps is possible with lumped silicon interferometric modulators. For reverse bias operation, we show that even greater bandwidth can be obtained with lower impedance drivers. Forward bias operation with pre-emphasized signals is shown to have clean eye diagrams up to 40 Gbps, however, error counting reveals a strong dependence on test patterns and that error-free operation is achievable for short pattern lengths.