We demonstrate Type II difference-frequency generation (DFG) around $1550\mathrm{nm}$ in AlGaAs Bragg reflection waveguides using a pump around $778\mathrm{nm}$ and a signal within the C-band range. Difference-frequency power of $0.95\mathrm{nW}$ was obtained using a pump power of $62.9\mathrm{mW}$ and a signal power of $2.9\mathrm{mW}$ . Nonlinear conversion efficiency was estimated to be $2.5\times {10}^{-2}\%/{\mathrm{W}}^{-1}{\mathrm{cm}}^{-2}$ in a 1.5-mm-long sample. Using numerical simulations, the phase-matching bandwidth was predicted to be $100\mathrm{nm}$ , while the measured DFG showed no sign of bandwidth limitation across a wavelength span of $40\mathrm{nm}$ , which was limited by instrumentation.