Low cost optical package

An optical package having a patterned submount, an optoelectronic device mounted to the patterned submount, a spacer affixed on one side to the patterned submount, the spacer having a bore hole therethrough wherein the optoelectronic device is positioned, and an optical element affixed to the spacer on a side opposite the patterned submount and covering the spacer bore hole. The patterned submount may be a circuit board. The optoelectronic device may be a VCSEL. The spacer may be affixed to the circuit board, for example, using an epoxy preform or an adhesive laminate. The spacer may, for example, be manufactured from a sheet of stainless steel or from a circuit board. The optical element may be, for example, a diffuser, a concave lens, a convex lens, a holographic element, polarizers, or diffraction gratings. The optical element may be affixed to the spacer using an epoxy preform or an adhesive laminate.