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OSP License and How to Obtain It

17th Jan 2019
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OSP is an abbreviated term of “Other Service Providers”. An Other Service Provider is a company that provides applications services that entail IT enabled services like Tele-Banking, Tele-Marketing, Tele-medicine and a plethora of others. How to get this license? What are its prerequisites? What documents would you require? What restrictions are there for an OSP Operation? Through this article, we are going to be demystifying the confusion behind these questions and provide you the right answers.


Start

When it comes to India, Call centres, BPOs and other can be counted as a cornerstone of India’s technological industry, and for good reason. There are countless such centres in India. The actual count associated with the number of such service providers is unprecedented. Not only this, such services have an immense impact on India’s economy with the yearly revenue through call centres in India being USD 710 million in the year 2018. This rising trajectory has motivated several individuals to start same sort of business. The specialized license needed to partake in such services is the OSP License.

Definition

OSP refers to Other Service Provider. Other Service Providers are providers of IT Enabled services, or application services to be exact. These purveyors are basically 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.

Types of OSPs

The factors that determine the type of OSPs are the following:

1.   The number of workers within an organization.

2.   The network area to which this service is to be provided.

Adhering to the aforementioned factors, two types of OSPs exist.

1.   Domestic: An Other Service Provider that provides application services within the national boundaries

2.   International: An Other Service Provider that provides application service beyond the boundaries of the nation.

How to get the license?

The way to obtain the titular license is nuanced and it involves fair amount of intricacies that are required to be covered up before you go ahead and file an application for registration. Simply put, these intricacies involved some prerequisites and some documents that are required to be attached along with the application.

1.   Gather and collate the documents in a proper fashion

2.   Apply for OSP registration online/offline by attaching the required documents along with the fees associated. The application is to be made to the Department of Telecommunication.

3.   After an especially scrutinized examination, you are going to get the license.

The entire process takes around 45 to 60 days.

Now, let us dive deeper into this process.

Major pre-requisite to start an OSP

In order to start an OSP Center, you need to have a proper foundation through which you are going to operate. This foundation comes in the form of an incorporated company. Yes, you would first need to go through company registration. The resulting business entity then shall become the focal provider of Other Services. The process of company registration involves its own set of intricacies. However, once you register your company, you can begin with the rest of the process. That being said, if you already have a company registered, then you already has access to the foundation upon which you can build an OSP.

Documents that you need to collect

1.   COI: The very first document that you require is the Certificate of Incorporation of the company.

2.   MOA and AOA: MOA refers to Memorandum of Association: a document that specifies the object of the company (here, it should be specified that starting an OSP is the object). AOA refers to Articles of Association: A document that specifies that specifies general rules, regulations and restrictions.

3.   A Board Resolution: A board resolution that authorizes the signatory. This is to be done using a power of attorney.

4.   Note of Business Nature: A not that explicitly, and in great detail, specifies the nature of business (Here, the business is to provide other service). This might be termed as a “note”, but in actuality, it is a pretty comprehensive document.

5.   Form - I: Form one is the primary document that the aspirant of starting such a business should fill in a correct fashion.

6.   A network diagram: One of the more important documents that is needed to be provided. This network diagram is to be made professionally and an authorized telecom Service Provider-who is set to provide these resources to the OSP Aspirant, must verify it. The diagram is then needed to be submitted to the VTM Cells for verification.

You will also need to provide information that entails the following:

1.   List of company’s directors

2.   List of company’s shareholders

One cannot just collect and fill these documents and just submit the application, for either a Chartered Accountant, a Company Secretary or a public notary would have to attest them.

OSP Operation Terms

Once you get the license, you can engage with the OSP operations right away (provided that you have gathered all of the resources). However, now the struggle is to towards maintaining the OSP Operation. These terms and conditions are quite diverse and quite comprehensive. That said, for the sake of simplicity; let us follow the crux of it through the following points:

1.   The telecom resources that an OSP avails should only be provided by an authorized telecom center.

2.   Only authorized internet service provider is to provide Internet resources to the OSP.

3.   The telecom bandwidth that is granted to the OSP can be shared among other activities within the same company.

4.   OSP License is a location based license. Therefore, if you have two locations under the same company in which you are setting up an OSP, you would need two licenses. The more branches you are transforming into Other Service Centres, the more licenses you will need.

If you renege from following any of the above conditions, your license can be suspended.

Conclusion

Obtaining an OSP License can be a pretty nuanced affair. Considering much of it depends upon the whims of the Department of Telecommunication, you should always be ready to assert yourself in order to get the license. That said, once you get this license, there is no stopping you from starting your own Call Centre.


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