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What is OSP?

OSP stands for Other Service Providers. The OSP consists of services that have become quite widespread in the contemporary marketing world. A few of these “other services” include the following:

  • Tele-banking
  • E-commerce
  • Call centers/BPOs
  • Tele education
  • Network Operation Center
  • Other related IT-enabled services
  • Tele-trading

Obtaining a license has been made mandatory for the OSPs by the Department of Telecommunication as per the New Telecom Policy (NTP), 1999.

The Telecom Commission formulated the terms and conditions of OSPs in the year 2000. As per these terms and conditions, the OSPs are not allowed to provide switched telephony. The OSPs can utilize telecom resources from authorized telecom service providers.

Types of OSPs

  • International OSP

    These are the OSPs that provide application services beyond the national boundaries of India.

  • Domestic OSP

    These are the OSPs that provide application within the boundaries of India.

  • Point of Presence

    This is the location where an OSP places equipment to act as an extension of the OSP center for the collection of telecom traffic related to the application services.

  • Hot sites

    This is the standby OSP center of the company or the third party that has been registered with the Department of Telecommunications. This standby is regularly updated and is kept ready for taking over the operations of the OSP centers in case there is any disaster or failure.

Interconnectivity between an international OSP and domestic OSP is not allowed. However, interconnectivity between two international OSPs or two domestic OSPs is permitted, provided they belong to the same Group Companies.

OSP Registration

In order to start an OSP center, the license has to be obtained from the Department of Telecommunication. It is necessary that the entity should be an incorporated business entity for getting the OSP license. The entity has to be a registered company as per the provisions of the Companies Act, 2013.

The OSP registration shall be done as per their location by the Telecom Enforcement, Resource, and Monitoring (TERM) Cells.

necessary papers required for OSP registration

The following necessary papers are required for getting the registration of an OSP center done:

  • Memorandum of Association
  • Articles of Association
  • A resolution passed by the Board of Directors
  • Power of Attorney that has been duly notarized giving authorization to the signatory with attested signature
  • A list stating the names of the present directors of the company along with their addresses
  • The current shareholding pattern of the company, indicating the Foreign as well as Indian equity
  • The OSP has to share its Network Diagram which could be Sharing of Infrastructure, Centralized EPABX architecture or the CUG facility. If there is any change in the network, the same has to be intimated immediately without any delay
  • In case interconnection of any International, OSP center is required with any other International OSP center of the Group Companies, the group companies should have submitted the following necessary papers:
  • Shareholding patterns of both the international OSP centers
  • Certificate from statutory auditor certifying that the interconnecting international OSP centers are Group companies
  • Other necessary papers like annual reports, balance sheet, etc. that support the interconnecting OSP centers are Group companies
  • If there is the interconnection of one national OSP center with another national OSP center, the following necessary papers would be required to be submitted:
  • Shareholding patterns of the domestic OSP centers
  • Certificate from statutory auditor certifying that the interconnecting international OSP centers are Group companies
  • Other necessary papers like annual reports, balance sheet, etc. that support the interconnecting OSP centers are Group companies

It is necessary that all the necessary papers must be certified with the seal of the Company Secretary or the Directors of the Company or Statutory Auditors or Public Notary.

Conclusion

In recent years, the services related to information technology and telecom industry have branched out and grown immensely. Therefore, the Indian Government, via the Department of Telecommunication, has decided to regulate these services under the heading “Other Service Providers.”

Getting an OSP registered with the DOT is no easy task and requires the assistance of professionals who are well-versed with all the aspects of the registration. This way, it is ensured that there is no shortcoming in any necessary paper required for registration and also avoids delay in registration.

Our team of experts has years of experience and expertise in rendering services pertaining to OSP registration. To avail our services or for any queries related to OSP registration, preparation of necessary papers for the same, preparing and filing annual returns, contact us.

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Frequently Asked Question

The OSP license is valid for a term of 20 years from the date on which it is issued. The same can be renewed for up to 10 years, every time at the time of renewal.

Yes, multiple registrations by an OSP is allowed once it has received registration of one location. Thereafter, registration at another place can be applied for by providing the license obtained at the time of first registration and a copy of incorporation by Registrar of Companies.

No, the transfer of OSP license from one company to the other has been prohibited by the Department of Telecommunication.

The OSP is required to submit the annual return within 6 months of registration. The annual return should consist of the details of the activities of the previous financial year and the status showing their OSP operation as active.

In case an OSP fails to submit Annual Return for consecutive three years, it shall be put in the dormant list, and the registration shall be cancelled if the company stays in the dormant list for two years.

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