The DoT guidelines OSP has to follow were changed recently in 2020. Read on to know how the new guidelines will benefit OSPs.
Overview:
In India, call centers are required to register as Other Service Providers (“OSP”) in the telecom industry.
The “New Guidelines for Other Service Providers” were released by the Department of Telecommunications, Government of India, on November 5, 2020. (“New Guidelines”). The “Terms and Conditions – Other Service Provider Category” (the “Old Terms”), which were in effect since 2008, have been replaced with the “New Guidelines,” which have been adopted in an effort to lessen the compliance requirements that apply to OSPs.
The New Guidelines’ revisions not only bring clarity but also further loosen the rules that apply to the BPO sector, which is likely to improve India’s appeal as a location for outsourcing. Let’s see the new DoT guidelines OSP has to follow.
OSP Registration
OSP registration in India is the process of registering a business with the government. The registration will help you to get all the necessary documents and licenses for your business. It also helps to keep track of your services and it will be helpful if you want to expand your business in the future.
The registration process helps you get a license from the government so that you can provide your services without facing legal issues later on. Registration is mandatory for all service providers. Registration is also compulsory for any business that provides telecommunication services or Internet access in India. In addition, it is essential for providing any other type of services such as cable TV and satellite TV, etc.
DOT OSP Registration in India
The Department of Telecommunications (DoT) in India requires Other Service Providers (OSPs) to obtain a DOT OSP license to provide services such as telebanking, tele-trading, telemedicine, e-commerce, network operation center, call center, and other IT-enabled services through telecom resources provided by authorized telecom service providers.
DoT Guidelines for OSPs
The OSP registration process can be done online by filling up all required details in a single go through a simple registration form provided on its official website. For working as an OSP, there are some DoT guidelines OSP has to follow.
Due to the COVID-19 scenario, DoT earlier loosened the rules for OSPs. With the publication of the 2020 Guidelines, the Other Service Providers (OSP) structure underwent a systematic change. The 2020 Guidelines eliminated numerous burdensome requirements like the need for registration and the provision of a bank guarantee. Here are some important changes that were made.
- The new DoT regulations allow OSPs to do their business from anywhere in India, including their homes.
- The businesses won’t be obliged to give the DoT bank guarantees. A bank guarantee in the amount of 1 crore per seat was formerly required.
- Additionally, OSP centers in India will no longer require registration.
- Infrastructure sharing will also be permitted between the businesses.
- According to the updated regulations, the idea of working remotely or from any location would be considered an expanded agent job or OSP remote agent.
If you have any confusion regarding the OSP guidelines or the OSP registration process, you can get in touch with Vakilsearch. Our team of expert lawyers will get through the process and solve all your queries.
Benefits of New DoT Guidelines
The changed DoT guidelines OSP has to follow have numerous advantages. Some significant advantages include,
- Lower operating expenses as OSPs are paying less for location, space rent, electric bills, and other expenses.
- Reducing the constraints that prevent the desired level of WFH model adoption, all of this is likely to lead to increased efficiency in the service delivery model.
- Due to the Freedom to set up remote centers anywhere in India, businesses are now free to hire and use personnel regardless of their current or future location, superseding a number of local regulations.
- This clause treats WFH roles as extended/remote agent positions with clearer rights and obligations than before, effectively treating employees’ homes as extensions of the company’s offices and lowering security and regulatory barriers to data access outside of the office.
- The technology and connectivity infrastructure requirements to enable WFH have been relaxed, along with the demands for static IP addresses and pre-established location-based networks.
These rules will fortify remote workers’ rights, lay the groundwork for WFH’s legal status under Indian labor laws, and allay worries about workplace health and safety.
All of these changes are favorable. However, there are still questions regarding:
- WFH-specific legislation within India’s labor laws still does not officially recognize work from homd, generating uncertainty over a number of employee rights and benefits.
- Uncertain tax incentives and deductions for employers and employees
- The majority of India’s IT-BP companies are located in software technology parks or special economic zones. Still, there is no long-term strategy for the temporary easing of import duties and mobility within these zones.
Documents Required for DOT or OSP License
- Certificate of Incorporation
- MOA & AOA of the Company
- Board Resolution
- Power of Attorney in favor of Authorized Signatory
- Note on Proposed Business Activity
- KYC of Director
- List of Shareholders
Mandatory Documents are Required to be Submitted at dot.gov.in
The mandatory documents required to be submitted at dot.gov.in are:
- Application form
- Board Resolution
- List of directors
- List of shareholders
- Network diagram
- List of telecom resources
Type of DOT OSP License
There are three types of DOT licenses:
- Domestic DOT OSP License: This license is necessary for domestic calling within India. It does not permit international calling.
- International DOT License: This license is required for making calls outside of India. Domestic calling is not allowed under this license.
- Domestic and International Registration: This type of license allows for both domestic and international calling. To obtain this license, the call center must have a minimum capacity of 50 seats, and a bank guarantee of Rs 50 lakh needs to be provided to the government.
Cost of the DOT License Registration Process
|
Type of License |
Cost |
| Domestic OSP DOT License | Rs 15000 |
| International OSP DOT License | Rs 15000 |
| Domestic and International License | Rs 180000 |
What Types of Companies Require DOT OSP License
The following types of companies require a DOT OSP (Other Service Provider) license:
- A company providing Tele-Banking Services.
- An organization engaged in Tele-Medicine.
- A business involved in Tele-Trading.
- A company operating a Call Centre/BPO/KPO.
- An organization engaged in E-commerce Business.
- The organization running the Network Operation Centre and other IT-Enabled Businesses.
Who Can Obtain DOT OSP License/Registration?
- Telecallers
- Call Centres
- BPO and KPO
- Outbound calling service
- Lead Generation companies
- Appointment setting companies
- White Paper research companies
- Tele-banking
- Tele education
- Tele-trading
- E-commerce
- Network Operation Center
- Other IT Enabled services
Most Important Conditions that need to be checked :
- Registration can be granted to any firm that offers Application Services. However, these service providers must not infringe upon the jurisdiction of other Authorized Telecom Service Providers, and they are prohibited from offering switched telephony services.
- The following conditions apply to entities seeking OSP registration:
-
- The entities eligible for OSP registration must be a company registered under the Indian Companies Act, 1956.
- A company seeking registration should submit an application to the relevant Authority in the prescribed format provided by the Authority. The list of authorities can be found in the annexure to the Application Form.
DOT OSP License Registration
The Registration Procedure for the DOT OSP License is as follows:
- Register an account on the Saral Sanchar website.
- Navigate to the DOT OSP license section on the website.
- Fill out the application form accurately and provide all the necessary information.
- Ensure that all required documents are attached to the application, with digital signatures where applicable.
- Make the required fee payment using the available online payment option.
- Review the form for any errors and correct them before submitting.
- The Department will review the information provided and verify the attached documents. They may request clarification if needed.
- Respond to any clarifications raised by the Department within the given time limit.
- Once all the information is verified and found to be accurate, the Department will issue the DOT OSP license.
It’s important to note that the specific requirements and processes may vary, and it is advisable to get in touch with our experts for the most up-to-date and accurate information regarding obtaining a DOT OSP license in India.
The Terms & Conditions to Run OSP Operations
The terms and conditions to run OSP operations include:
- The OSP entity is only permitted to acquire telecom assets or resources from an Authorized Telecom Service Provider. The Authorized Telecom Service Providers can supply telecom resources to the OSP after reviewing the network diagram of the intended network setup by the OSP and verifying its legitimate use.
- OSPs are required to submit a copy of the network diagram, duly approved or authorized by the Telecom Service Provider (TSP), to the VTM Cells for record keeping and verification purposes.
- Both the Authorized Telecom Service Provider and the OSP are responsible for any violations of the terms and conditions stated in the license/registration. They share responsibility for the proper use of Telecom Resources.
- Other Service Providers must have internet connectivity from an Authorized Internet Service Provider.
- OSP is allowed to share its telecom bandwidth with other operations within the same company or group of companies. However, the Other Service Providers must ensure that there is logical separation between the Telecom Resources used for their specific activities and those used for OSP purposes. Voice and non-voice traffic should not flow between them.
- There is no authorization or permission for domestic OSPs to have interconnectivity with international OSPs.
What’s the Need for a DOT OSP License in India?
The DOT OSP license is required to ensure that OSPs comply with the terms and conditions set by the DoT and do not infringe upon the jurisdiction of other authorized telecom service providers.
Conclusion
OSP registration in India is an important process for the service providers who are providing services to Indian customers. The other service providers have to register with the IT Department of India.
All the companies and organizations which provide telecommunication, data processing, and other services should register themselves with the Department of Telecommunications of India.
Vakilsearch can help you with the OSP Registration process. Our team of legal experts will contact you and help you with the process. They will even submit the application on your behalf and make the registration process easy for you.
FAQs
What is OSP registration?
OSP registration refers to the process of obtaining a license from the Department of Telecommunications (DOT) in India for setting up and operating an Other Service Provider (OSP) business. It allows entities to provide services such as call centers, IT-enabled services, and other applications using telecom resources.
Who needs OSP registration?
Entities engaged in providing Application Services, such as call centers, BPOs, IT-enabled services, and other similar businesses that utilize telecom resources, need to obtain OSP registration.
How do I register as OSP in dot?
To register as an OSP in DOT, you need to submit an application with the required documents and information to the concerned authorities. The application process may vary, and it is advisable to consult with the expert st Vakilsearch for the specific registration procedure.
What are the types of OSP license?
The types of OSP licenses in India include Domestic OSP License, International OSP License, and Domestic and International OSP Registration. The specific license type depends on the scope and nature of the services the OSP intends to provide.
What is the cost of OSP license in India?
The cost of obtaining an OSP license in India can vary and is subject to the type of registration. Refer to the table above for better understanding.
What is OSP in telecom?
In the context of telecom, OSP stands for Other Service Provider.
Why is OSP license required?
An OSP license is required to regulate and monitor entities that provide Application Services using telecom resources. It ensures compliance with the rules and regulations set by the Department of Telecommunications (DOT) to maintain quality, security, and proper functioning of telecom services.
What is the validity of OSP?
OSP license is valid for a period of 20 years.
What is the full form of OSP license?
OSP license stands for Other Service Provider license.
Is DOT license required for BPO?
Yes, a DOT license, specifically an OSP license, is required for BPOs (Business Process Outsourcing) that provide Application Services using telecom resources in India.
What is domestic OSP?
Domestic OSP refers to an OSP that provides Application Services restricted to domestic calling within India. It does not include international calling facilities.
What is DOT license for call center?
A DOT license for a call center refers to an OSP license that allows entities to operate call centers and provide Application Services using telecom resources. The license ensures compliance with regulatory requirements set by the Department of Telecommunications (DOT).
