This paper describes the technological issues in achieving a low-cost hybrid WDM module for access network systems. The problems which should be resolved in developing a low-cost module are clarified from the viewpoint of the module assembly in mass production. A design concept for a low-cost module suitable for mass production is indicated, which simplifies the alignment between a laser diode and a waveguide, and reduces the number of the components such as lenses and mirrors. The low-cost module is achieved by employing a flip-chip bonding method with passive alignment using a spot-size converter integrated laser diode (SS-LD) and p-i-n waveguide photodiodes (WGPDs) on a planar lightwave circuit (PLC) platform. We confirm that the SS-LD and the WGPD provide high coupling efficiency with a large tolerance for passive alignment. To achieve a high-sensitivity receiver, the module is designed to employ an asymmetric PLC Y-splitter that prefers a PD responsivity to an LD output power because of the high-coupling efficiency of the LD, and to employ a bare preamplifier mounting to reduce the parasitic capacitance into a preamplifier. We also demonstrate the dynamic performance for a 50-Mb/s burst signal, such as a high sensitivity, an instantaneous AGC response, and a small APC deviation of the transceiver.