The present invention provides for a transceiver comprising a transmitter portion and a receiver portion. The transmitter portion includes a laser, the laser providing an optical signal having one of a plurality of wavelengths. The optical signal from the laser is modulated to create a first wavelength-division multiplexed signal at an output of the transceiver. The optical signal from the laser is also used by a demultiplexer to demultiplexer a second wavelength-division multiplexed signal at an input of the transceiver. The use of the optical signal from the laser in both modulation and demodulation of wavelength-division multiplexed signals results in a transceiver having fewer discrete components resulting in a compact design and reduced costs.