A systematic study by envelope and prism coupler waveguide methods based on 62%+or-0.5%, atomic concentration of Zn in sputtered ZnO films has been made. In this paper, we report the propagation loss and transmission characteristics of ZnO films. The results show that if sputtering pressuring is varied from 0.30-0.31 mTorr, in the sputtering environment of 50% Ar+50% O2 and the substrate temperature between 300 degrees C to 350 degrees C, thereby increasing the transition energy (LMM) of Zn from 992.4 to 993.6 eV (in the elemental form), the refractive index reduces drastically to 1.75+or-0.05 (in visible and near IR region) and propagation losses are estimated to be 1-4 dB/cm. The best film has a visible transmission of about 85% and is optically clear with a bandgap of 3.3 eV.