A coaxial transmitter optical subassembly (TOSA) including a ball lens may be used in an optical transceiver for transmitting an optical signal at a channel wavelength. The coaxial TOSA includes a laser package with a ball lens holder section defining a lens holder cavity that receives the ball lens. The lens holder cavity is dimensioned such that the ball lens is positioned in substantial alignment with the laser diode for optically coupling a laser output from the laser diode into an optical waveguide at an optical coupling end of the TOSA. The coaxial TOSA is thus configured to allow the less expensive ball lens to be used in a relatively small package when a lower coupling efficiency and power is desired and without substantial redesign of the TOSA.