A quad, small form-factor pluggable 28 Gbps optical transceiver design scheme is proposed. It is capable of transmitting 50 Gbps of data up to a distance of 40 km using modulation signals with a level-four pulse-amplitude. The proposed scheme is designed using a combination of electro-absorption-modulated lasers, transmitter optical sub-assembly, low-cost positive-intrinsic-native photodiodes, and receiver optical sub-assembly to achieve standard performance and low cost. Moreover, the hardware and firmware design schemes to implement the optical transceiver are presented. The results confirm the effectiveness of the proposed scheme and the performance of the manufactured optical transceiver, thereby confirming its applicability to real industrial sites.