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Abstract Terahertz technology has the potential to have a large impact in myriad fields, such as biomedical science, spectroscopy, and communications. Making these applications practical requires efficient, reliable, and low‐cost devices. Photoconductive switches (PCS), devices capable of emitting and detecting terahertz pulses, are a technology that needs more efficiency when working at telecom wavelength excitation (1550 nm) to exploit the advantages this wavelength offers. ErAs:InGaAs is a semiconductor nanocomposite working at this energy; however, high dark resistivity is challenging due to a high electron concentration as the Fermi level lies in the conduction band. To increase dark resistivity, ErAs:InGaAlBiAs material is used as the active material in a PCS detecting Terahertz pulses. ErAs nanoparticles reduce the carrier lifetime to subpicosecond values required for short temporal resolution, while ErAs pins the effective Fermi level in the host material bandgap. Unlike InGaAs, InGaAlBiAs offers enough freedom for band engineering to have a material compatible with a 1550 nm pump and a Fermi level deep in the bandgap, meaning low carrier concentration and high dark resistivity. Band engineering is possible by incorporating aluminum to lift the conduction band edge to the Fermi level and bismuth to keep a bandgap compatible with 1550 nm excitation.