* enabled transmitter to avoid current leakage in case
                         * no module is connected
                         */
-                       if (bnx2x_is_sfp_module_plugged(phy, params))
-                               bnx2x_sfp_module_detection(phy, params);
-                       else
-                               bnx2x_sfp_e3_set_transmitter(params, phy, 1);
+                       if ((params->loopback_mode == LOOPBACK_NONE) ||
+                           (params->loopback_mode == LOOPBACK_EXT)) {
+                               if (bnx2x_is_sfp_module_plugged(phy, params))
+                                       bnx2x_sfp_module_detection(phy, params);
+                               else
+                                       bnx2x_sfp_e3_set_transmitter(params,
+                                                                    phy, 1);
+                       }
 
                        bnx2x_warpcore_config_sfi(phy, params);
                        break;
                        params->phy[INT_PHY].config_init(phy, params, vars);
        }
 
+       /* Re-read this value in case it was changed inside config_init due to
+        * limitations of optic module
+        */
+       vars->line_speed = params->phy[INT_PHY].req_line_speed;
+
        /* Init external phy*/
        if (non_ext_phy) {
                if (params->phy[INT_PHY].supported &