What are the Recommendations of TRAI on OSP?

11 August 2023

338 4 mins read

Check out this blog to learn all about the TRAI Recommendations on OSP. Also, learn about the new guidelines, their expected benefits, and other relevant information.

Table of Contents

Introduction:-

An OSP (Other Service Provider) is a telecommunication service provider who has rented the services of an existing service provider to further provide them to consumers who are associated with the OSP. The other service providers are not a part of the main network of Telcos in India.

There are two types of OSPs operating in India. These are the long-distance service providers and the internet service providers.

OSPs are regulated by TRAI (Telecom Regulatory Authority of India). They were allowed entry into the telecom sector to introduce competition that would lead to better service provided to the consumers. As a result of bringing in OSPs, the cost of data services and calling too came down significantly. The quality of service also improved, and so did customer satisfaction.

For anyone who wanted to operate as an OSP, it was mandatory that they had a valid license issued by DOT (the Department of telecommunications). The OSP also needed to work according to the specified regulations laid down in connection with interconnection, security, safety, and quality of service, as set by DOT.

Types of OSPs (Other Service Providers)

The factors that determine the status/type of an OSP are –

The number of employees working in the company
The total network area that is covered by the company

The two types of OSPs that are functioning in India depend on the above-mentioned factors. They are –

Domestic OSPs – these provide services only to individuals and businesses within the country
International OSPs – they provide application services in areas even outside the boundaries of the country

TRAI Recommendations on OSP – Guidelines for OSPs

TRAI has released a set of guidelines for the OSPs for their operations within India. These guidelines have been formed with the digital India initiative of the nation in mind. The motive behind the guidelines is to provide a fair opportunity along with a competitive environment for the service providers so that they can flourish.

It is expected that this will not only attract investments but also pave the way for innovations. It will also ensure that the consumers enjoy safe and quality services at reasonable rates.

The government liberalized the guidelines associated with OSP in November 2020 to encourage the business process outsourcing industry in the country.

This was with the intention of providing a better and easier working environment for business process outsourcing and also to benefit the various domestic consumers and businesses. The new guidelines that were announced then have been further simplified and provide for even better regulatory clarity and ease of doing business.

Features of the Guidelines:-

The main features of the guidelines are mentioned below.

Removal of disparity

– There is no more distinction between the International and Domestic OSPs now.

Relaxing of restrictions on Interconnectivity

– Now, BPO centres with common Telecom resources can not only serve domestic clients but can also cater to customers located all across the world.

– EPABX (Electronic Private Automatic Branch Exchange) of the OSPs can be located either within the country or outside the country (anywhere in the world).

– The OSPs have been provided with the freedom to utilise EPABX services of the Telecom service providers while locating their EPABX at a third-party data centre within the country.

– After the removal of the disparity between the domestic and international OSP centres, it has become possible to create interconnectivity between the various OSP centres.

Work from home/Work from anywhere

– OSP agents and workers located in remote or far-flung regions can now connect with the centralised EPABX or EPABX of the OSP or of the customer. This can be done by using any technology, such as broadband, no matter whether it is wireline or wireless.

– The agents are permitted to work from home or work from anywhere.

Data interconnectivity

– The restriction regarding data interconnectivity between OSP centres of the same company/group company or unrelated company has now been removed.

– All database services have been exempted from the OSP regulations. Now. the OSPs License, too, are not required to go in for any type of registration or provide a bank guarantee.

Removal of all penalties on violations

– Reaffirming the trust in the business, all forms of penalties for any violations have been removed.

– These steps towards the liberalisation of guidelines have paved the way for the rapid growth of the other service provider industry in the country. Further leniency will create more opportunities, employment, and income in this sector.

Expected Benefits of the Guidelines

The following are the benefits of the guidelines:

The liberalisation of guidelines by the authorities will allow the OSPs to function freely
The business process outsourcing firms and Information Technology Enable Service firms will cut down costs on rent, electricity, internet bills, and others
The companies will not be liable to provide details of the number of OSP employees as, under the new guidelines, they are referred to as extended or remote agents
The exemption of registration has done away with the need for renewal of the license. This will result in foreign companies setting up their OSP units in India. This will not only improve the quality of service provided but also provide employment and investment in the country
The employees of OSPs, while working from home, will also be able to freelance for several companies. Thus, increasing their income. You can also Know more about License of Shops Online.

Conclusion:-

We hope this article has been helpful in providing information on the TRAI Recommendations for OSP. The new liberalized guidelines for OSPs have opened a vista of increased opportunities, employment, income, and betterment for the people.

The scraping of disparity between the domestic and international OSPs will allow foreign companies to set up their contact centres and BPOs in India.

Also, removing restrictions on interconnectivity will result in the smooth sharing of knowledge. Visit VakilSearch to find similar informative articles. Browse through the website and avail of the blogs that are of your interest.

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