A method is provided to lower the overall power consumption of small form-factor pluggable (SFP) transceivers. The method includes receiving an indication to operate the SFP transceiver in a low power mode, and setting the SFP transceiver to a low power mode in response to the indication by at least switching off a thermal electric cooler (TEC) that controls a temperature of a laser diode of the SFP transceiver. The proposed method may be implemented whenever a reach is not more than a predetermined distance, for example, 65 kilometers. At such reduced distances, the TEC of the SFP transceiver can be switched off while still guaranteeing link functionality. The instant low power mode has the benefit of reducing the power consumption of the SFP transceiver so that, for example, host platforms with lower power delivery budgets can support the SFP transceiver for at least some applications.