The deal adds financial impetus to the concept of converged networks that recently received a major boost with the announcement of Unlicensed Mobile Access specifications.

The specifications, derived from input from a host of major U.S. and European operators and equipment suppliers, set up a standardized mechanism of linking GSM/WiFi networks.

Azaire has tackled some of the major stumbling blocks to convergence, namely security, authentication and integrated billing. Its Converged Network Platform integrates these features onto carriers' existing network with multi-authentication, integrated billing, secure roaming, delivering common data services and providing end users a unified user interface.

The company has already implemented its platform with Rogers Wireless, Canada's largest GSM operator, Mobilkom Austria and GoMobile, Malta's fastest growing mobile operator. The platform is currently undergoing trials with several other carriers.

The funding round was led by Rustic Canyon Partners and Woodside Fund. Existing Series A investors, including Convergence Partners, also participated in the round. Azaire Networks said it will use the funds to expand the company's sales and product development activities and increase its marketing resources globally.

In conjunction with this announcement, Michael Kim, a partner with Rustic Canyon Partners and Robert Larson, cofounder and managing director of Woodside Fund, were elected to Azaire's board of directors.