ACT Fibernet eyeing national broadband pie

HYDERABAD: Bengaluru based Atria Convergence Technologies (ACT), backed by the global institutional investors India Value Fund, Olympus Capital Asia and Kilimanjaro Netherlands, is planning to roll-out its broadband services across the country, earmarking Rs 100 crore investments for each centre.

ACT will evaluate brownfield expansion in the Northern markets, said chief executive officer Bala Malladi at an event in Hyderabad on Monday.

Present across four Southern states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, the optical fibre based broadband and cable TV provider will begin the rollout with Visakhapatnam by first quarter of 2015-16.

As a part of its national strategy, the player rebranded its Hyderabad-based broadband service Beam Fiber to ACT Fibernet.

Apart from its major broadband market in Hyderabad where it serves around 4.5 lakh households, the company’s broadband services has a presence in Bengaluru with a penetration of 1.4 lakh homes and the year-old Chennai operations garnering some 5-6% of the market.

ACT acquired Hyderabad-based Beam in 2009 with a 43% year-on-year growth in the broadband business from the subsidiary. “We are currently well-funded but will look at follow-on rounds to fund the expansion,” said Bala Malladi. The company has projected a turnover of Rs 750 crore for FY 2014-15.

In 2008, India Value Fund Advisors acquired majority stakes in ACT. The company further raised Rs 180 crore through issue of Non Convertible Debentures in 2013 in favour of Olympus Capital Asia Credit and Kilimanjaro Netherlands BV, a subsidiary of Kilimanjaro Credit Fund.