We demonstrate 250-km nondispersion-shifted fiber transmission of directly modulated 2.5-Gb/s signals. The chirping-induced power penalty is reduced by using a spectral filter whose transmission peak is tuned to ''mark'' wavelength of the modulated laser output. A well-known intensity modulation with a sufficiently high extinction ratio is used to suppress the intersymbol interference induced by nonuniform frequency modulation response of semiconductor Iasers. The observed results are explained theoretically by using eye closure penalty.