Covaro joins Ethernet access fray

Ethernet access equipment vendor Covaro Networks emerged from stealth mode this week, joining a crowd of vendors exploiting the IEEE Ethernet First Mile standard 802.3ah, which is expected to be ratified this summer.

Covaro’s gear delivers Ethernet traffic over copper, fiber and coaxial cable, addressing one of the primary limitations on metro Ethernet service: the fact that only a fraction of American businesses have access to fiber. Startup rivals such as Ceterus Networks offer gear that is similarly media-agnostic, allowing customers to use their existing infrastructure with the new technology.

Covaro hopes to distinguish its gear from others with network management intelligence features that will allow service providers to offer differentiated services. With Covaro’s Etherjack platform, carriers and customers can monitor and remotely test Ethernet links through an Internet portal as well as offer virtual local area network (VLAN) services and quality of service features for voice over IP.

"CLECs have traditionally made a business offering DS-1 services cheaper than the ILEC," said Covaro CEO and President Joe Bass. "That only works so far. We want to provide CLECs, for example, an opportunity to offer these high-availability intelligent Ethernet service where the ILEC may not be ready to do so and differentiate themselves on a service offering rather than just price."

At the same time, he added, Covaro wants to enable incumbents to migrate frame relay and ATM-based services to packet-based versions.

Covaro is currently engaged in 10 trials in North America among carriers of varying sizes, the company said.

With a recently closed B-round of $25.3 million, Covaro has collected total funding of about $42 million from venture capitalists including Sevin Rosen Funds and Centennial Ventures.