Discover the necessity of an OSP license for the registration of call centers in India by exploring the comprehensive guide on Other Service Providers.
Overview
For those intending to establish an OSP Center, securing an OSP License is imperative. The rationale behind this necessity is rooted in the guidelines outlined by the New Telecom Policy (NTP) of 1999. As per these regulations, entities that are not telecom service providers can utilize the infrastructure provided by various access providers to operate as Other Service Providers (OSP). This umbrella term encompasses a range of services such as telebanking, telemedicine, teletrading, and e-commerce.
The requirement for an OSP license stems from the legal imperative that businesses cannot operate without the appropriate license for their specific activities. This regulatory framework ensures compliance with the law, allowing entities to engage in diverse services under the OSP category.
Furthermore, the need for OSP registration is underscored by compliance requirements related to hardware and safety concerns. These considerations emphasize the importance of adhering to regulatory standards and obtaining the OSP license to run a legitimate and secure business.
OSP: Mandatory Licensing Requirements
Securing an OSP License is imperative when launching an OSP that provides IT-enabled services. Authorization from approved sources is mandatory to utilize resources on a large scale while offering IT-enabled services. Below, we delve into the specific OSP centers, emphasizing why an OSP License is indispensable:
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Tele Education
Tele-education facilities, requiring a considerable workforce to engage with numerous clients, demand a secure and legal interaction between professionals (teachers) and students. The OSP License is crucial in ensuring compliance with DOT regulations to maintain the integrity and legality of these interactions.
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Business Process Outsourcing (BPO)
BPO models, dealing with various IT-enabled services like bill preparation, customer handling, and payment administration, often involve the processing of substantial personal information. To prevent any information breaches and ensure data security during processing, an OSP License becomes essential in this context.
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Knowledge Processing Outsourcing (KPO)
KPO, being a significant consumer of IT-enabled resources, handles large volumes of data for data mining operations. The OSP License, with its stringent security requirements, ensures that data remains uncompromised despite its extensive processing. This strict oversight is crucial in upholding data security standards.
OSP Categories
OSP (Other Service Provider) categories refer to different classifications based on the nature of services provided by entities falling under the OSP framework. In India, the Department of Telecommunications (DoT) categorizes OSPs to regulate and streamline various telecom-related services. Below are some common OSP categories:
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International OSP
Companies offering telecom-related services across international borders fall under this category. These services may include telebanking, telemedicine, teletrading, and e-commerce with an international scope.
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Domestic OSP
Entities providing telecom services within national borders are classified as Domestic OSPs. They cater to services such as telebanking, telemedicine, teletrading, and e-commerce confined to the domestic market.
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Domestic and International OSP
Companies engaged in offering telecom services both within the country and internationally fall into this category. They need to adhere to regulations for both domestic and international service provisions.
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OSP for IT-enabled Services
OSPs focusing on IT-enabled services, such as business process outsourcing (BPO) and knowledge process outsourcing (KPO), are categorized based on the nature of their offerings. This includes services like customer handling, payment administration, data processing, and more.
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OSP for Tele-Education
Entities providing tele-education services, requiring substantial personnel to interact with clients, are categorized under OSP for Tele-Education. This involves ensuring compliance with Department of Telecommunications (DOT) regulations.
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OSP for Telemedicine
OSPs engaged in providing telemedicine services, and connecting healthcare professionals with patients remotely, fall under this category. Compliance with DOT regulations is crucial in this sector to ensure legal and secure operations.
Required Documents For OSP License
The following documents are needed to obtain an OSP license:
- Certificate of Incorporation
- Articles of Association and the Memorandum of Association
- Board decision or Power of Attorney with the certified signatures of the Authorised Signatory granting authorization
- A concise description of the prospective OSP’s line of business or activity
- A list of the current directors of the company
- Current corporate shareholding patterns
Note – All of the aforementioned documents must be attested to by a public notary, a company secretary, a director, or one of the statutory auditors
How to Apply for an OSP License
To obtain an OSP License from the Department of Telecommunications, whether for domestic or foreign operations, companies must follow a structured process:
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Eligibility Criteria
Companies registered under the Companies Act of 1956 or the Companies Act of 2013 qualify for OSP Registration.
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Form Submission
Submit Form-I to the Department of Telecommunications (DoT) to initiate the OSP Registration process. The application can be made online through the DoT website.
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Location-Specific Registration
OSP Registration is specific to each location. Therefore, a business may have multiple OSP Registrations for different sites.
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Multiple Registrations
If a business has multiple registrations, it should initially submit an OSP Registration application for one site. Additional site applications can be made after obtaining the registration certificate for the first location.
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Modification Notification
If there are plans to modify or add to the Point of Presence (POP), the company must inform the DoT accordingly.
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Application Fee
Along with the OSP Registration Application, a nominal processing fee of around ₹1000 must be submitted.
Validity Of OSP License
The OSP Registration/License remains valid for twenty years from the date of issuance. Upon request, the OSP Registration’s validity can be extended for an additional ten years beyond the initial twenty-year period.
The 19th year marks the point at which the OSP must submit a request for the extension of the OSP License, with the Department of Telecommunications (DoT) who has the ultimate authority to decide on the extension.
Any changes to the company’s name or address provided during registration must be promptly reported to the DoT, accompanied by the necessary documentation.
Post- Lisencing Compliances Requirements for OSPs
Annual Return Submission
Within six months following the end of the fiscal year, the OSP is obligated to submit an “Annual Return” to the registering authority, following the designated Performa. This annual return should provide specific details about the OSP’s operations during the preceding fiscal year, along with the status of those operations.
Active OSP List
The “Active OSP List” is regularly updated to include operational OSPs, ensuring transparency in the list of active service providers.
Dormant List and Deletion
OSPs failing to submit yearly returns for three consecutive years are moved to the “Dormant List.” After two years on this list, their registrations are deleted. This emphasizes the importance of consistent compliance with annual reporting requirements to maintain active OSP status.
