Bangalore-based Internet provider Atria Convergence Technologies (ACT) is planning to roll out broadband services across the country and is earmarking Rs 100 crore investments for each centre, reports the Economic Times. Speaking to the publication, chief executive officer Bala Malladi said that ACT will evaluate brownfield expansion in Northern markets.
ACT is currently present in Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, and will begin operations Visakhapatnam by first quarter of 2015-16. ACT has rebranded its broadband brand ACT Broadband as ACT Fibernet following its aqcusition of Beam Telecom and said it will provide 100 Mbps for retail use and up to 250 Mbps for commercial usage as part of its rebranding plan.
Malladi also told Business Standard that it plans to hit a user base of one million in the next year. Currently, it claims to have a customer base of close to 700,000. The company also claims to be largest wired-broadband provider in Hyderabad with 450,000 connections and says it has 140,000 connections in Bangalore, commanding a market share of 25%.
ACT is backed by the private equity firm India Value Fund Advisors (IVFA) which became the majority shareholder in the company in 2008. It had also raised $23 million of debt financing from Olympus Capital Asia Credit (OCA Credit) and Kilimanjaro Credit Fund in February last year. In June 2014, ACT had also acquired an additional 20% stake in Hyderabad-based ISP Beam Telecom for an undisclosed amount, thereby increasing its stake in the company to 80%.
Earlier in January the FIPB deferred India Value Fund’s proposal for a downstream investment in ACT . India Value Fund has 97% FDI also has downstream investments in companies engaged in internet service provider and multi system operator for cable network.