The centralized Point-to-Point fibre access approach with a dedicated single mode optical fibre link connecting each customer to a Central Office (CO) has advantages regarding future-proofness, security, and simple and low-cost optical links and transceivers. The potential bottleneck in handling the large number of optical fibres that need to be terminated in the CO, and combined with optoelectronic components, has been studied within the IST 6 th Framework Programme integrated project MUSE. The key parts in the CO are the passive cabinet where customer fibres are accessible through fibre connectors in the Optical Distribution Frame (ODF), and the active cabinet with switching equipment and optical transceivers. For the passive cabinet we conclude, that the most efficient solution is that each connection from the active cabinet to a customer passes only one ODF, and that small form factor connectors are used. For the active cabinet we have demonstrated the feasibility of an SFF-size module containing two bi-directional transceiver units by building and successfully testing a prototype, increasing the customer port density by a factor of two compared to commercial transceivers. The power consumption, which impacts power supply, cooling and cost, has been analyzed, and we propose measures to significantly decrease the power consumption.