The terms OSP and ISP are often confused. The main difference is that an OSP provides access to the internet, while an ISP provides access to the internet as well as other services. Check out this blog to know about OSP Vs ISP.
Introduction
In order to regulate the Telecom sector and improve the infrastructure, a new telecom policy was introduced by the Indian Govt. in 1999. Under the new policy, regulations were also introduced for the OSP (other service providers). In February 2000, the terms and conditions for the same too were introduced. They were revised in 2008 and further revised through various amendments as and when needed.
An OSP is registered under the Companies Act of 2013 or LLP (Limited Liability Partnership). It provides services like telemedicine, telebanking, tele-education, e-commerce, tele-trading, network operation centres, call centres, and other IT-enabled services by efficient usage of the Telecom Resources provided by authorised service providers. These are facilities like –
- PSTN (Public Switched Telecom Network)
- PLMN (Public Land Mobile Network)
- ISDN (Integrated Services Digital Network)
- Telecom bandwidth
The telecom resources can be provided by TSPs holding a valid license under the Indian Telegraph Act, 1885. For the OSPs to utilise the application services, it is mandatory that they obtain the license issued by DoT. The registration is done by TERM (Telecom Enforcement, Resource, and Monitoring) depending upon the location of the OSP.
Types of OSPs
- Domestic OSPs – these provide application services within the county
- International OSPs – they provide application services outside the national boundaries
- Hot Sites are another category that are standbys and are used during emergency or disaster situations
Domestic and International OSPs – Important Terms and Conditions
- An OSP should be registered under the Companies Act, 2013. It can also be registered under the LLP Act, 2008
- OSPs are not allowed to provide switched telephony and cannot infringe on the jurisdiction of other TSPs Before providing telecom resources to an OSP, the TSP must examine the network diagram provided by the OSP
- The OSP should seek internet connectivity from an authorised ISP
- It is not permissible for the International OSP and domestic OSP to be interconnected
What is an ISP?
An internet service provider or ISP is a company that provides internet and other related services to various organisations and individuals. It has the telecommunication line and associated equipment to provide the services in the geographic area of its jurisdiction. ISPs provide their customers with internet along with e-mail, web hosting, and domain registration. ISPs provide internet connections like cable and fiber and also come in the form of high-speed broadband or non-broadband services.
How Do Isps Work?
To provide service to customers, the ISPs are connected to a single or more than one high-speed internet line. The big ISPs maintain their own high-speed leased lines. This enables them to provide better services to the customers as they are not fully dependent on telecommunication services. ISPs also maintain servers in data centers – the numbers depend on their service area. These control all their customer traffic. Sometimes several ISPs are seen to be connected to huge routing centres. ISPs are grouped into three tiers –
Tier 1 ISPs
These manage most of the traffic on their own as they possess enough physical network lines and hence have the maximum global reach. They negotiate with other Tier 1 networks so the traffic passes through that network to other tier 1 providers. These provide network access to tier 2 ISPs.
Tier 2 ISPs
These service providers connect the tier 1 and tier 3 ISPs. They possess regional and national reach. They buy access to tier 1 networks but team up with tier 2 ISPs. They mostly have commercial and consumer customers.
Tier 3 ISPs
Tier 3 ISPs connect their customers to the internet via another ISP’s network. They pay the higher tier ISPs to use their internet services. Their work is to provide internet services to local consumer markets and businesses.
Different Types of Services
Cable – Coaxial cable is used to provide this service. This is similar to the cable that provides television service. This cable has low latency with an upload speed of 5 – 50 Mbps and a download speed of 10 – 500 Mbps.
Fiber – this internet service uses fibre optic cable for data transmission. This is much faster than cable or DSL. With a download speed of 250 to 1,000 Mbps and upload speeds of 250 – 1,000 Mbps, it is best suited for online gamers and heavy internet users.
DSL – This service provides internet service to the users through a telephone line. Easily and widely available it is being replaced by cable and fibre services. It provides slower service with upload speeds of 1 – 10 Mbps and download speeds of 5 – 35 Mbps. This service is suitable for users of remote or rural areas and for those who use the web frugally.
Satellite – Satellite internet services work through the communication satellite. It is a slow process with upload speeds of 3 Mbps and download speeds of 12 – 100 Mbps. This service is suitable for remote areas.
Difference Between OSP and ISP – OSP Vs ISP
The table below shows the difference between OSP and ISP.
| Basis of comparison | OSP | ISP |
| Full form | OSP stands for Other Service Provider | ISP stands for Internet Service Provider |
| Purpose | OSP provides online services via the internet to the desired users. | ISP provides access to internet services and data connectivity to the users. |
| Services provided | It provides online services when already connected. | It provides an internet connection when hiring ISP services. |
| Choice of Internet speed | It does not provide internet speed choice. | It provides internet speed facility according to the need of the customer |
| Services and facilities | Provides various services and facilities. | Lack of services |
| Security | OSP may or may not be secure | ISP is secure |
| Rate | Prices are cheaper | Prices most of the time is high |
| Software used | OSP uses proprietary software | ISP does not use any proprietary software |
| Approach | Guided tour approach to the internet | No guided tour approach to the internet |
| Example | Google, Yahoo, and AOL provide online searching services, Amazon and Flipkart provide shopping services, etc. | BSNL, Google, MTNL, AT & T, Verizon, etc. |
Conclusion
Frequently Asked Questions
What is OSP vs ISP in telecom?
OSP (Other Service Provider) and ISP (Internet Service Provider) are distinct entities in the telecom industry. OSPs offer services like call centres, telebanking, telemedicine, etc., while ISPs provide internet access and related services to end-users.
What is an OSP network?
OSP network refers to the infrastructure and facilities used by Other Service Providers (OSPs) to deliver non-telecom services like call centres, telebanking, telemedicine, etc. It includes equipment, software, connectivity, and other resources necessary for providing these services.
What is an OSP provider?
An OSP (Other Service Provider) is a company or entity that offers non-telecom services like call centres, telebanking, telemedicine, etc., using telecom infrastructure. OSPs must adhere to regulatory guidelines and obtain licenses to operate legally in the telecom sector.
Who needs an OSP license?
Entities providing non-telecom services like call centres, telebanking, telemedicine, etc., using telecom infrastructure require an OSP (Other Service Provider) license. This ensures compliance with regulatory requirements and enables lawful operation within the telecom sector.
What are the two types of ISP?
Internet Service Providers (ISPs) are categorized into two types: Access ISPs and Transit ISPs. Access ISPs provide internet access to end-users, while Transit ISPs facilitate data transmission between Access ISPs and the wider internet.
Is Airtel an ISP?
Yes, Airtel is an ISP (Internet Service Provider). It offers internet access and related services to end-users, businesses, and other entities, operating within the telecom sector's regulatory framework as an authorized ISP.
What is OSP full form?
OSP stands for Other Service Provider. It refers to entities offering non-telecom services like call centres, telebanking, telemedicine, etc., using telecom infrastructure, subject to regulatory guidelines and licensing requirements in the telecom sector.
What is OSP in India?
OSP (Other Service Provider) in India refers to companies or entities providing non-telecom services like call centres, telebanking, telemedicine, etc., utilising telecom infrastructure. They must comply with regulatory norms and obtain licenses to operate legally within the Indian telecom sector.
