RICHARDSON, Texas -- It's no secret that Ethernet services aren't as profitable as they could be. This is primarily because carriers just haven't had the ability to differentiate their Ethernet services and turn Ethernet into the profit center it should be - until now. Covaro Networks is out to put the intelligence and the profit in Ethernet services.

"More and more customers are demanding Ethernet services, lower prices, and the convenience of incremental bandwidth from their service providers; nearly every major service provider is offering Ethernet services today, as they know that they must respond to customers or lose them to competitors," said Infonetics Principal Analyst Michael Howard. "The groundswell has begun, and, although it won't happen immediately, over the next 10 years, Ethernet will inexorably take over the metro."

With its Etherjack(r) Products, Services and Management Suite offerings, Covaro Networks makes it possible for carriers to deliver and manage intelligent Ethernet services over existing copper, fiber and/or coaxial cable facilities. This results in a consistent user experience, regardless of user location, and provides carriers with a powerful connection to their customers. Carriers can use that connection to improve relationships with customers, gain a competitive advantage, increase operational efficiencies and free-up stranded profits.

"The ability to provide Ethernet services that boost profits is going to be irresistible to carriers around the world," stated Joe Bass, president and CEO of Covaro Networks. "And Covaro makes that possible with Etherjack(r). We're excited about the impact we'll have on this market - both now, and in the future."

Covaro's approach to serving carrier needs is pragmatic. Not long ago, companies were asking carriers to rip out existing networks to replace them with new, more efficient hardware. Covaro takes an approach that lets carriers keep their existing networks, equipment and facilities, while still enjoying increased efficiency. Using Etherjack(r) Products and the Etherjack Management Suite, a demarcation point is created between the carrier and its customers. This enables carriers to provision intelligent Ethernet services, monitor the efficiency of a single network or multiple networks on a 24-7-365 basis, locate faults and make fixes before network failure occurs. These abilities allow carriers to provide consistent service level agreements and develop competitive service offerings that act as differentiators.

Formed in 2002, Covaro is helmed by a strong management team whose members have led major divisions with industry giants such as Cisco Systems, Fujitsu, Alcatel, Nortel Networks, Xerox, Texas Instruments and Siemens. Through two rounds of funding, Covaro raised more than $40 million from top-tier investment firms including InterWest Partners, CenterPoint Ventures, Sevin Rosen Funds and Centennial Ventures, among others.

Covaro Networks Inc.