Videsh Sanchar Nigam (VSNL) and the MobileFirst alliance, an alliance of cellcos consisting of BPL Mobile, Escotel, RPG cellular and Spice Telecom, today announced an agreement to make VSNL their preferred carrier for long distance traffic. Apart from the alliance partners, VSNL would also carry long distance traffic for Hutch and Idea, who are the strategic partners for the MobileFirst alliance.

While the exact rates offered by VSNL for carrying the long distance traffic is not known, it is learnt that certain ‘volume discounts’ have been offered to MobileFirst. The MobileFirst alliance has an existing subscriber base of over 3m. Commenting on the agreement, S K Gupta, managing director, VSNL said, "Through this agreement, VSNL will now be among the preferred national long distance carriers and the ‘first-in-route’ for all outgoing ILD traffic for the MobileFirst alliance."

The MobileFirst alliance is in an advantageous position to offer NLD and ILD services through VSNL. With a backbone of over 10,000 kms and 3m subscribers across 700 towns, MobileFirst encompasses contiguous cellular circles, with BPL Mobile in Maharashtra, TN and Kerala, Escotel spanning Haryana, Kerala, UP west, UP east, Rajasthan and HP, RPG Cellular in Chennai and Spice Telecom in Punjab and Karnataka.