Hyderabad: Atria Convergence Technologies Pvt. Ltd (ACT), the fourth biggest wired Internet service provider (ISP) in the country, is targeting 1 million subscribers over the next 12 months, even as it is firming up plans to enter newer markets.

The company, which provides Internet connectivity using optical fibre, aims to become a national player, and will enter at least one new city every year with an investment commitment of 100 crore in each city, Bala Malladi, chief executive officer of ACT, said. He declined to identify the cities because expansion plans are still being finalised by the board.

“We will do a national rollout primarily based on the understanding of the market and the market’s ability to take an ISP provider," Malladi said. He did not rule out the acquisition route to enter newer markets. The company is well funded for the next 2-3 years based on 50-60% growth rate, said Malladi.

The company is growing at 43% annually while its bigger rivals—BSNL, MTNL and Airtel—are growing at 3% a year, Pramod Kalra, partner at IVF (India Value Fund) Advisors Pvt. Ltd, an investor in ACT, said. IVFA invested an undisclosed amount in ACT in 2008.

ACT, which is a significant player in the southern part of the country, operates Internet business in Hyderabad, Bengaluru and Chennai apart from smaller cities such as Vijayawada, Visakhapatnam, Nellore and Eluru. It has 650,000 subscribers of which 450,000 are from Hyderabad alone.

The Bengaluru-based company had revenue of 500 crore in 2013 and plans to end the current fiscal with 750 crore revenue, Malladi said. The business is profitable, he said.

ACT, which operates under the brand name Beam Telecom in Hyderabad, is the market leader in wired Internet connectivity in the city with a 70% market share. On Monday, ACT said it is merging Beam Telecom Pvt. Ltd with itself, and renaming it ACT Fibernet.

Beam Telecom was acquired by ACT in 2009, and is 100% owned by ACT. C.S. Sunder Raju, managing director of ACT and Kalra of private equity firm IVFA declined to disclose the deal size. Raju holds a “significant minority stake" in ACT with IVFA holding the majority stake. Together, they have invested over 1,000 crore so far to grow the business.

ACT’s cable business has 700,000 customers in Andhra Pradesh, Telangana and Tamil Nadu.

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