What is OSP License?
OSP full form is ‘Other Service Provider.’ Other Service Providers are providers of IT Enabled services, or application services to be exact. These are companies who engage with services such as BPOs, Call Centres, Tele trading, telemarketing, network operation centres, E-commerce, Tele Banking and other IT Enabled services. Now, all of these services are provided through telecom resources that in turn, are provided by the Authorized telecom service providers only. An OSP License is a form of registration where a company becomes eligible to provide Other Services.
Department of Telecommunication under the New Telecom Policy (NTP) 1999 made it compulsory for OSPs using telecom resources to obtain License. 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 a call centre, telebanking and other IT-enabled services. Therefore, the Department of Telecommunication (DOT) now registers OSPs in India and has registered over 2500 cases since inception.
What is Department of Telecommunications (DOT)
Department of telecommunication falls under the Ministry of Communications (Sanchar Mantralaya) and Department of Telecommunications (Door Sanchar Vibhag). Following are the functions of the Department of Telecommunication:
- Formulation of policies relating to telecommunications, granting licences, regulation and also management of matters relating to all forms of communications.
- Additionally, Development and standardization of research and development in telecommunications.
- Assessing the quantum of private investment in Telecommunications.
- Ensuring telecommunications networks are secure and also keep cyber threats in check
- Providing financial assistance for the research and development of telecommunications technology and also for providing adequate training to manpower for telecom programme.
- Additionally, acquiring of stores and equipment required by the Department of Telecommunications.
Types of OSPs
The factors that determine the type of OSPs are the following
- The number of workers within an organization.
- The network area to which this service is to be provided.
Adhering to the aforementioned factors, the following three types of OSPs exist:
- Domestic DOT OSP License – You require a Domestic OSP license if the call is in India only (domestic calls).
- International DOT License – You require an International DOT license if the call is outside India.
- Domestic and International Registration – This form of license enables you to call in India as well as outside India. The combined license requirement is for centers were minimum 50 seats and the Rs 50 Lakh bank guarantee to be furnished to the government.
Terms & Condition for OSP Registration
The following are the terms and conditions for OSP registration:
- The OSP shall take the Telecom Resources from an Authorized Telecom Service Provider only.
- The Authorized Telecom provides resources to it only after examining the network diagram of the network proposed to be set up by the same and after ensuring its bonafide use. The OSP must also submit a copy of the network diagram approved by the Telecom Service Provider to VTM Cells for records and verification.
- It may also have internet connectivity from the Authorized Internet Service Provider.
- Additionally, It permits you to share the Telecom bandwidth with other activities of the same Company or group of companies.
Who requires DOT/OSP license
Businesses that provide the following services need an OSP licence to operate in India:
- Telecallers
- BPO and KPO
- Outbound calling service
- Lead Generation companies
- Appointment setting companies
- White Paper research companies
- Tele-banking
- Tele education
- Tele-trading
- E-commerce
- Call Centres
- Network Operation Center
- Other IT Enabled services
FAQs
An OSP license is valid for 20 years from the date of issue. However, you can extend it further for another 10 years.
No. DOT prohibits the transfer of OSP registration from one Private Limited Company to another.
No, it is mandatory for the entity to be a private limited company.
Trade License is a license or permission issued by a municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.