According to reliable sources, Cheecoo.com co-founder Vikram Wagh has begun discussions with VSNL's top officials for the purpose. Although, details about the deal are under wraps, the ongoing parleys are for sharing facilities of VSNL.

VSNL sources said cheecoo.com offers free Internet access to its customers and so there is a need for Internet hours in bulk. If the company enters into a strategic alliance with VSNL, it will help Cheecoo reduce dependence on other ISP firms.

It is not known whether Cheecoo is also eyeing the Internet customer-base of VSNL. As VSNL has already entered into an alliance with indiainfo.com offering user-base and sharing its brand, the proposed tie-up with Cheecoo may raise eyebrows. Industry sources said that if these companies forge an alliance, there will be no investment from VSNL's side since the state-run firm did not inject any funds to take a 30 per cent equity in indiainfo.com. In fact, VSNL will gain a minimum revenue of Rs 200 crore over the next three years from indiainfo.com.

When contacted, Cheecoo's Vikram Wagh neither denied or confirmed the move. However, VSNL sources said that the talks between the two companies are on, but no deal has been finalised.

Recently, Cheecoo has received funds worth about Rs 10 crore from a leading venture capital fund. It is also in talks with several foreign and domestic VCs as part of the second round of funding. It was aiming an annual revenue of Rs 50 crore from advertisements in the first year of operations, it is learnt.

Cheecoo does not charge its members any registration, set-up fees or monthly subscription charges. For the purpose of registration, the customer using any Internet connection can log onto www.cheecoo.com and follow the registration instructions.