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Atria plans to pump in Rs 500 crore, eyes 1 mn broadband subs
MUMBAI: Broadband and cable TV player Atria Convergence Technologies, which is controlled by India Value Fund Advisors, is planning to invest Rs 500 crore (Rs 5 billion) as it has set an ambitious target of reaching one million broadband subscribers within two years.
Rechristening its new broadband brand ACT Fibernet, the company is looking at raising Rs 350 crore (Rs 3.5 billion) as debt while the balance funding will come from the existing shareholders.
“Our investment requirement would be Rs 500 crore and we will doubling our broadband subscriber base to one million in the next 18-24 months. Our balance sheet is strong and we are planning to raise Rs 350 crore as debt. The shareholders will put in the remaining amount in proportion to their equity holding,” ACT Group CEO Bala Malladi told TelevisionPost.com.
The company that had started off with 30,000 subscribers has now reached half a million broadband subscribers. Hyderabad accounts for 380,000 broadband subscribers.
“We will be able to add 200,000 subscribers in Hyderabad. Another 300,000 should come from Bangalore, Chennai and the other areas,” Malladi said.
ACT is expecting to double its revenue to Rs 1,000 crore (Rs 10 billion) in the next 18-24 months. In the fiscal ended 31 March 2014, the company had posted a revenue of Rs 500 crore (Rs 5 billion).
“We are confident of touching a revenue of Rs 1,000 crore (Rs 10 billion) within two years. We have already touched a revenue of Rs 650 crore (Rs 6.5 billion),” said Malladi.
ACT Fibernet has launched a 60 Mbps plan priced at Rs 1,999 per month with a maximum download limit of 100 GB. The service provider has upgraded its entire subscriber base in Bangalore to the new plan at no extra cost.
On the rebranding, Malladi said, “Just as the company has evolved over the years, our brand must evolve and reflect the impact of our technological advancement and the value it brings to more than half a million subscribers.”
ACT, which provides broadband through fiber-to-the-home technology, has leapfrogged into the top league of ISPs in India within a short span of just three years.
The company has embarked on a marketing drive to promote its new offering. ACT Fibernet will be seen across Bangalore city in the print, outdoor and digital media. The new brand is now live on the company’s corporate website as well as the dedicated broadband portal acttv.in.
As earlier reported by TelevisionPost.com, Atria Convergence Technologies had recently hiked its stake in Beam Telecom to 80 per cent with the intention of fully acquiring it soon. It had raised Rs 180 crore (Rs 1.8 billion) of debt to fund 20 per cent addition stake acquisition.
The company is also preparing to seed set-top boxes (STBs) in towns that fall under digital addressable system (DAS) in Phase III. In Bangalore, it is looking at 50,000 STBs to take its base to 175,000. In Andhra Pradesh, where Atria has a subscriber base of 300,000, it is targeting 0.5 million digital cable TV subscribers.