According to the New Telecom Policy of 1999, an OSP license is required for any business that offers "Application Services" while using telecom resources. To learn more, continue reading.
An OSP License is a type of registration through which a business can start offering Other Services. OSP stands for “Other Service Provider”. Other service providers, to be precise, offer application services or IT-enabled services. These are businesses that offer IT-enabled services such as,
- BPOs,
- Call Centres,
- Telemarketing,
- Teletrading,
- Network operation centers,
- E-commerce, and telebanking.
Now, only authorised telecom service providers offer these services, which are all delivered through telecom resources. An OSP License is a type of registration through which a business can start offering Other Services.
It is implemented by the DOT and has made license acquisition mandatory for OSPs employing telecom resources. According to the Terms and Conditions established by the Telecom Commission in February 2000, OSPs are only permitted to use telecom resources from authorised TSPs and are not permitted to offer switched telephony.
Also, OSPs using telecom resources to offer a range of services including a call centre, telebanking, and other IT-enabled services must be registered with the Department of Telecommunication. As a result, the DOT has registered over 2500 incidents since it began registering OSPs in India.
You can also obtain an OSP license with the help of experienced legal professionals at Vakilsearch.
In this blog, we will discuss all about the OSP license.
What is the Department of Telecommunications? (DOT)
The Department of Telecommunications reports to the Ministry of Communications. The Department of Telecommunication has the following responsibilities:
- Formulating telecommunications policies, granting licenses, regulating,
and managing issues pertaining to all forms of communications.
- Additionally, the advancement and standardisation of telecommunications research and development.
- Evaluating the level of private investment in the telecom sector.
- Providing financial support for the research and development of telecommunications technology. As well as for the provision of suitable training to manpower in the telecom program. Ensuring that telecommunication networks are secure and also contain cyber threats.
- Purchasing the supplies and tools that the Department of Telecommunications mandates.
Types of OSPs
The following are the variables that determine the type of OSPs:
- The number of employees in a company.
- The area of the network that will receive this service.
According to the elements mentioned above, there are three different kinds of OSPs:
Domestic DOT OSP License
OSP provides call centers, network operation centers, telemedicine, telebanking, and e-commerce. As well as it includes other IT-enabled services within the boundaries of their home country, in this case within India.
International DOT License
Services that provide IT-enabled services outside of India’s national borders, such as telebanking, teletrading, telemedicine, e-commerce, network operation centers, call centers, and other services.
Domestic & International Registration
With this type of license, you are allowed to make calls both inside and outside of India.
OSP Registration Terms & Conditions
The following conditions must be met in order to register with OSP:
- Only authorised telecom service providers can supply Telecom Resources to the OSP.
- Telecom will only provide its resources after examining the network diagram for the proposed network and ensuring that they are being used for intended purposes. The OSP shall deliver to VTM Cells a copy of the network diagram approved by the Telecom Service Provider.
- Also, it might have access to the internet via the authorised internet service provider.
- It also enables you to share the telecom bandwidth with other operations carried out by the same business or group of businesses.
Who Needs to Obtain a DOT/OSP license?
An OSP license is required to conduct business in India if a company offers any of the following services:
- BPO and KPO Telecallers Outbound Calling Service
- Generating leads businesses
- Appointment-making businesses
- White Paper research firms
- Tele-banking
- Teletrading
- E-commerce
- Call Centers Network Operation Center
- Other IT-enabled services
How to Apply for an OSP License
The DOT must issue an OSP Registration/License to either the domestic OSP or the foreign OSP. To register as an OSP, either nationally or internationally, the subsequent actions must be taken:
- Companies that have been set up in accordance with the Companies Act of 1956 or the Companies Act of 2013 are qualified to apply for OSP Registration.
- To request OSP Registration, a business must send Form-I to the DoT. One can submit an online application on the DoT website.
- OSP Registration specific to a location is necessary. As a result, a company may have numerous OSP Registrations.
- If there are numerous registrations, the company should file an OSP Registration application for one site. The company can ask the appropriate authorities for more sites.
- If a corporation wants to change or expand its Point of Presence, it must notify the DoT. (POP).
- The OSP Registration Application must be submitted along with a processing fee of
₹1000.
Required Documents For OSP License
A valid OSP license requires the following documents:
- A Certificate of Incorporation from the Registrar of Companies.
- The MOAs and the AOAs of the company.
- Board decision or Power of Attorney with the certified signatures of the Authorized Signatory granting authorization.
- A summary of the prospective OSP’s proposed business or activities.
- A list of the company’s current directors.
- Current company shareholding patterns.
A company secretary, a director, a public notary, or one of the statutory auditors must certify each of the aforementioned documents.
OSP License Validity
A twenty-year period follows the date of issuance for the OSP Registration/License. After the initial twenty-year period has elapsed, the validity may, upon request, be extended for a total of ten additional years. The request for an OSP License extension must be made by the end of the registration period’s 19th year.
The final decision regarding the extension request will be made by the DoT. Any time the company’s name or address that was provided at the time of registration changes,
the OSP must notify the DoT. one must provide the necessary documentation as well.
Conclusion:
After reading this article, we hope that one understands what an OSP license is and why it is needed.
Also, keep in mind that OSPs are required to file an “Annual Return” to the DoT within six months of the end of each financial year. it should be done to preserve OSP registration compliance.
The Return should describe the OSP’s current operations and status. As a legal process, it necessitates the help of legal experts. Therefore, if you are someone who wants to get their OSP registration done without any hassle, our legal experts at Vakilsearch can be your best bet.
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