Other Service Provider (OSP) License

What is Other Service Provider Registration?

Other service providers refer to such companies which are engaged in the providing Application Services. The Telecom services are to be provided by the authorized telecom service provider having a valid license under Indian Telegraph Act, 1885. You are required to obtain the OSP registration to start the business as other service provider.

Now, this may keep you wondering what Application services are. Application service pertains to the teleservices by using Telecom Resources provided by Authorized Telecom Service Providers.

Application services include the following

• Telebanking,
• Telemedicine,
• Tele-education,
• Tele-trading,
• E-commerce,
• Call center,
• Network operation center and other IT Enabled Services,

Types of OSP License

There are different types of OSP license which is issued by the Department of Telecommunication. The following are the types of license provided by the Department of Telecommunication:

Domestic OSP License-

Usually this form of license is utilise by BPOs, LPOs and KPOs to carry out services such as domestic calling. International calling is usually not allowed through this form of license. Usually such license is only provided by the application to carry out services across the national boundaries of India.

International OSP License-

Usually this form of license is utilised by companies that carry out services related to international OSP calling. Companies which utilize these forms of services can contact clients abroad. Usually this form of OSP license is utilised by global and multinational companies.

Domestic and International OSP License-

When an applicant takes this form of license it would be utilized both for international calling services and domestic calling services. A company which has both local clients as well as international clients will utilise this form of license to carry out services.

Benefits of OSP License in India

The following benefits can be availed by the applicant by securing an OSP license in India:

Compliance with Regulations-

An applicant taking this form of license would be compliant with the relevant regulations which would be applicable to BPOs and LPOs. Additional burden would not be placed on the applicant for carry out functions normally.

Accountability-

Apart from being compliant with the regulations which affect the business, the business can be accountable for all actions related to compliance.

Reputation-

Companies which have this form of license are compliant with the relevant rules of the authority. Companies with such license would be more reputed in the eyes of the public.

International Expansion-

An applicant having the domestic and international OSP license can opt for international expansion. With international expansion, the applicant would have access to new clients, more amount of revenue and diversify the opportunities for the business

What will be the registration process for Single Location Registration?

For registration: General condition subject to which the OSP is provided

• For OSP registration these service providers will not infringe on the jurisdiction of other Authorized Telecom Service Providers and they will not provide switched telephony must be a company registered.
• The application is required to be made before the authorities. The List of authorities annexed to the Application Form.

Documents Required to be Submitted For OSP Registration

For OSP Registration

• Certificate of Incorporation of the Company
• Memorandum of association and Article of Association
• Board resolution or Power of Attorney for the purpose of authorizing the authorized signatory to attest the signatures.
• A note on the nature of business/activities of the proposed OSP
• List of present Directors of the Company.
• The shareholding pattern of the company about the equity details, indicating the Indian Equity and Foreign Equity.

What will be the registration process for Multiple Location Registration?

• The applicant is required to apply to a unit of Department of Telecom (Head Quater) having jurisdiction, where one site of OSP is proposed to be located.
• Once the registration certificate for the first location, is received, then it may apply to other respective designated authorities for remaining sites.
• However, this time to apply only the copy of OSP Registration obtained for the first site is required to be submitted along with the copy of the certificate of incorporation issued by the registrar of companies for the cases OSP has made the registration within one year and there is no change in the status of previously submitted Documents.
• On completion of one year, a complete set of the Documents shall be submitted.
• Any change in OSP registration must be intimated to the Authority.

Fees for registration:

As such, there is no money to be paid apart from the processing fee of Rs. 1000/- which is payable along with the application for OSP registration.

The amount is paid in the form of a demand draft from a scheduled bank in favor of the concerned Accounts Officer of registering authority.

The validity of the certificate:

The registration certificate is valid for 20 years from the date of issue unless otherwise mentioned in the registration letter.

Extension to the validity period:

The validity of the registration may be extended, by 10 years at one time, when a request for extension is made during the 19th year of the registration period on the terms mutually agreed. The Authority has full discretion power and its decision shall be final in regard to the grant of extension.

The requirement to furnish information:

• The OSP on demand by the authority shall furnish the information and Documents such as details of the accounts, estimates, returns, reports or other information including system passwords in accordance with the rules/ orders as may be prescribed from time to time.
• The OSP is required to submit ‘Annual return’ to the registering authority in the prescribed Performa within six months of completion of the financial year. The Annual return must indicate the details of the activities of the previous financial year along with the status of the continued OSP operation.
• The operational OSPs are required to put in the Active OSP list.

The consequence of not filing the annual return:

After obtaining the OSP registration in case the OSPs in case of failing to submit the annual return for consecutive three years shall be put in the dormant list, followed by registration cancellation. The company is canceled after keeping them in the dormant category for two years. Such a list is made available on the DOT website.

Other regulatory requirement:

 The TRAI (Telecom Regulatory Authority of India) requirement for OSP:

The Telecom Regulatory Authority of India (TRAI) has published a set of draft recommendations with the intent of transparency and fair-play and, as a consequence the consumers. In the recommendations, the concept of OSP has been extended and certain conditions have been imposed on its registration.

Given below are the Conditions for OSP registration :

• A Company is eligible to apply for more than one registration, which is based on the location.
• No license fee is applicable for OSP registration, however a processing fee of Rs. 1000 to the Department of the telecom (DoT) is required to be paid.
• The registration so obtained is valid for 20 years, also it may be extended by 10 years at a time.
• The registration for the operation of Value Added Services is made on a non-exclusive basis
• They are required to use common short codes and consumer practices in line with the DoT guidelines.
• An OSPs is not allowed to employ bulk encryption equipment; as the encryption equipment will need the approval of the mobile operator. Note that the  Encryption higher than 40 bits will need permission, and the decryption key will need to be given to the DoT.
• The OSP is required to obey the Privacy Binding on OSP to maintain the confidentiality of consumer data.
• Off-deck players are allowed to charge the only charge for content. They are not permitted to collect charges/ revenue for access/carriage charges related to telecom access services.

Revenue Sharing:

Now the question arises how the Revenue is shared for on deck and off deck OSP?

• In the case of the On Deck, the revenue share pertains to the as negotiated and decided between the operators and content providers/Value added service companies. Basically based on the mutual decision between the involved parties.
• In case of the Off Deck, the Telecom operators may be mandated to publish their access charges for value-added services provided under “Off Deck” model. It is recommended that the separation of content from carriage is to be done, as previously the carriage charges have been arbitrary, resulting in non-uniform fee.

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