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Introduction to OSP License
OSP stands for Other Service Providers referring to the service provided in the Telecommunication Industry which uses telecom resources. It involves BPO/call centers, e-commerce, telebanking, telemedicine,-education, and other IT enabled services. Department of Telecommunication under the New Telecom Policy (NTP) 1999 made it compulsory for OSPs using telecom resources to obtain License.
Overview
In February 2000 the Telecom Commission formulated terms and conditions with regard to OSPs. According to the terms and conditions OSPs should not provide switched telephony and are allowed to take telecom resources from authorized Telecom Service Providers only. Department of Telecommunication provides registration to telecom resources providing an array of services, which includes services like telebanking, call center and other IT enabled services.
Applicability
OSP registration is mandatory for service providers in India providing services like telemedicine, tele-education, telebanking, tele-training, call center, e-commerce, network operation center, other IT Enabled Services and is using telecom resources.
OSP Registration Requirement
In order to obtain Registration, it is mandatory for the entity to be a Private Limited Company. Following documents are necessary for OSP Registration in addition to the application in the prescribed form:
- 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.
Compliances of OSP
The license for OSP is valid for a period of 20 years, if not expressly mentioned otherwise. Annual Return of an OSP is submitted to the Department of Telecommunication mentioning the activities undertaken and present status of OSP. Further, annual return for OSP License renewal must be submitted with 6 months of completion of the financial year. It is noteworthy that it is mandatory for OSPs to maintain compliance with the Terms and Conditions prescribed by the Department of Telecommunication for OSPs.
OSP License is valid for 20 years from the date of issue which can be extended up to 10 years each time it is renewed.
Yes, after receiving registration for one location, the OSP can apply for another location providing the OSP license of the obtained location and a copy of incorporation by ROC.
No. Transfer of OSP registration from one Private Limited Company to another is prohibited by the DOT.
After the submission of the Annual return, once the status is validated, the operational OSPs shall be put in the Active OSP list.
After the completion of the Financial Year, the Annual Return is to be submitted within 6 months. The annual return must indicate the details of the activities of the previous financial year and the status of their continuing the OSP operation.
Those OSPs who do not submit the annual return for consecutive three years will be put in the dormant list and their registration will be canceled after keeping them for two years in the dormant list. Such a list would be made available on the DOT website.
OSP providing the application services within national boundaries is known as Domestic OSP. Whereas, OSP providing application services beyond national boundaries is known as International OSP. Interconnectivity is not allowed between them.