A system, method and apparatus for power saving using burst-mode transmission over point-to-point physical connections. In one embodiment, a physical layer device (PHY) is provided that includes a data detector that is configured to generate a first control signal upon receipt of a non-idle code group over an interface between the PHY and a media access control (MAC) device and to generate a second control signal when all data received from the MAC device has been transmitted by the physical layer device. The PHY also includes a laser for transmission of data over an optical network cable, the laser being configured to perform a first transition from an off state to an on state based on the first control signal, and to perform a second transition from the on state back to the off state based on the second control signal.