The agile development methodology demands close collaboration with client, rapid requirements change and an iterative development of fixed length. When this way of agile approach is applied in a distributed project, it requires frequent communication and knowledge exchange among the dispersed team members and need collaboration with customer over distance. Besides the geographical, the linguistic and the different time zone barriers in a distributed project, the computer mediated tools suppose being useful media in connecting and to coordinating among dispersed colleague in a project. Though, these tools depict variant effectiveness in communication exchange, however, there efficient use connects peoples at the two sites. The aim of this case study is to explore the communication channel support in a distributed project. The purpose of the research is to analyse collaboration in distributed teams working together through computer mediated technology. For this purpose, a company case is studied doing a distributed agile project. Based on the case analysis, the authors suggest the recommendations for implementing and establishing agile practices in a distance project.