OSP Registration in India

As per the New Telecom Policy (NTP) 1999, service providers in India involved in providing services like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call center, network operation center and other IT Enabled Services, using telecom resources are termed as “Other Service Providers” (OSP). These Other Service Providers or OSP’s are required to obtain a OSP Registration from the Department of Telecommunication (DOT). In this article, we look at the process and procedure for obtaining OSP Registration in India.

Overview

As per the Terms and Conditions formulated by the Telecom Commission in February 2000, OSP’s can take telecom resources from authorized Telecom Service Providers only and should not provide switched telephony. Further, the Department of Telecommunication must register OSPs using telecom resources for providing an array of services like call center, tele-banking and other IT enabled services. Therefore, the Department of Telecommunication (DOT) now registers OSPs in India and has registered over 2500 cases since inception.

OSP Registration Applicability

Service providers in India involved in providing services like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call center, network operation center and other IT Enabled Services, using telecom resources are required to obtain OSP Registration. Telecom Resources are telecom facilities used by an OSP including, but not limited to Public Switched Telecom Network, Public Land Mobile Network, Integrated Services Digital Network (ISDN) and /or the telecom bandwidth provided by authorized telecom service provider.

OSP Registration Requirement

To obtain a OSP Registration in India, it is mandatory for the entity to be a Private Limited Company. Therefore, Entrepreneurs having plans for starting a call center or BPO or e-commerce or other IT Enabled Services must incorporate a Private Limited Company. The following are the documents necessary for OSP Registration in addition to the application in the prescribed format:

• Certificate of Incorporation of Private Limited Company
• Memorandum of Association (MOA) and Articles of Association (AOA)
• Board of Resolution or Power of Attorney authorizing the authorized signatory
• Name of Business and Activities Proposed
• List of Directors
• Present Shareholding

The above documents must be certified with seal by a Company Secretary or Director of the Company or Statutory Auditor or Public Notary.

OSP Registration Compliance

Once a OSP Registration is approved, the license is valid for a period of 20 years – unless otherwise expressly mentioned.  To maintain compliance, each of the OSPs are required to submit an “Annual Return” to the DOT mentioning the activities undertaken and the present status of the OSP. The annual return for OSP License renewal must be submitted with 6 months of completion of financial year.

In addition to the above, OSPs must maintain compliance with the Terms and Conditions prescribed by the Department of Telecommunication for OSPs. The detailed terms and conditions for OSP Registration and OSP Operation to be maintained can be downloaded here.

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