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I would like to make an isolated POE802.3af controller that can convert POE ~48V to 5V 2A, but the main problem is most designs use a standard POE transformer that has multiple coils. The problem with multiple coils is they are bulky and take up lots of volume.

For example the TPS27331 enter image description here Source: TPS23731 Datasheet

If designing an IoT device this makes the design difficult if it's volume constrained. One way around this is to drop isolation and use a low end buck, but this presents a few challenges as it makes the device more susceptible to ESD, it also nullifies any way to get an 802.3 certification as Ethernet/POE needs to be isolated for this standard. Is there a way to use a small transformer in an isolated flyback POE design?

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Yes, the MP8107 uses a flyback topology that is isolated and can use a smaller 2 coil transformer. The overall footprint is ~1"x0.7"

enter image description here Source: https://www.monolithicpower.com/en/mp8017.html#gallery-1

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