OSP Registration: A Comprehensive Guide

In India, the term Other Service Provider (OSP) refers to organisations that offer a wide range of services such as telebanking, telemedicine, tele-education, tele-trading, e-commerce, call centres, and network operation centres, utilising telecom infrastructure. The Department of Telecommunications (DoT) mandates that such businesses obtain an OSP Registration to ensure compliance with regulatory standards under the New Telecom Policy (NTP) 1999. 

What is Other Service Provider Registration?

OSP Registration is a legal mandate under the DoT for entities leveraging telecom resources to provide IT-enabled services. The objective is to regulate telecom infrastructure usage, ensure lawful operations, and maintain industry standards.

Telecom Resources include:

• Public Switched Telecom Network (PSTN)
• Public Land Mobile Network (PLMN)
• Integrated Services Digital Network (ISDN)
• Permitted telecom bandwidth from licensed telecom service providers

Entities offering the aforementioned services are required to register as an OSP with the DoT.

Applicability of Other Service Provider Registration

Organisations that fall under the following categories must obtain an OSP license:

1. Telebanking: Facilitating financial transactions remotely through telecom services.
2. Telemedicine: Providing healthcare consultations and services over telecom networks.
3. Tele-education: Delivering educational content to remote areas via telecom infrastructure.
4. Tele-trading: Conducting trade and commerce activities through telecom resources.
5. E-commerce: Enabling online sales platforms and marketplaces.
6. Call Centers: Handling inbound and outbound customer communication.
7. Network Operation Centers: Monitoring and managing telecom networks.

Types of OSP Licenses

The DoT offers three categories of Other Service Provider licenses based on the scope of operations:

Eligibility for Other Service Provider Registration

To apply for an OSP license, the applicant must meet the following criteria:

1. Legal Entity: The organisation must be a Private Limited Company registered under the Companies Act, 1956 or 2013.
2. Document Submission: The following documents must be submitted:
   • Certificate of Incorporation
   • Memorandum of Association (MOA) and Articles of Association (AOA)
   • Board Resolution or Power of Attorney authorising the signatory
   • Details of business activities and proposed name
   • List of directors
   • Present shareholding pattern

Note: All documents must be certified by a Company Secretary, Director, Statutory Auditor, or Public Notary.

Process for Other Service Provider Registration

Obtaining an Other Service Provider (OSP) License is a critical step for businesses offering IT-enabled services like call centres, telemedicine, tele-education, and e-commerce. The registration process ensures compliance with regulations set by the Department of Telecommunications (DoT) under the New Telecom Policy (NTP) 1999. Here’s a detailed, step-by-step guide to the OSP registration process:

Application Preparation

The first step in acquiring an Other Service Provider license is the meticulous preparation of your application. This involves:

• Gathering Required Documents: Collect all necessary documents, including:
  • Certificate of Incorporation of the Private Limited Company.
  • Memorandum of Association (MOA) and Articles of Association (AOA).
  • Board Resolution or Power of Attorney authorising the signatory.
  • Details of business activities, directors, and shareholding patterns.
  • All documents must be certified by a Company Secretary, Director, Statutory Auditor, or Public Notary.
• Completing Form-I: Fill out Form-I accurately, as this is the official application form for OSP registration.

Submission

Once the application is ready, it needs to be submitted online. The steps include:

• Portal Access: Log in to the SARAL Sanchar portal, the designated platform for Other Service Provider registration.
• Fee Payment: Pay the applicable fee based on the license type:
  • ₹15,000 for Domestic or International OSP Licenses.
  • ₹1,80,000 for Combined Domestic and International Licenses.
• Uploading Documents: Upload all required documents in the specified format on the portal.

Review by DoT

After submission, the DoT reviews the application to ensure compliance with regulatory requirements:

• Document Verification: The submitted documents are scrutinised for completeness and authenticity.
• Clarifications: The DoT may request additional information or clarifications if any discrepancies are found.
• Communication: Applicants are notified through the portal or official communication channels about any required amendments.

Approval and Issuance

Upon successful review, the DoT grants the OSP license:

• Certification: The Other Service Provider registration certificate is issued, officially allowing the business to commence operations.
• Timeline: The approval process typically takes 20-30 days, depending on the type of license applied for.

Site-Specific Registration

OSP registration is inherently location-specific, meaning:

• Separate Registrations: Each site from which the business operates requires its own registration.
• Additional Applications: For multiple sites, the organisation must file separate applications for each location.
• Point of Presence (POP): Any changes to the Point of Presence (POP) or addition of new POPs must be reported to the DoT.

Validity and Renewal of OSP Registration

• The Other Service Provider license is valid for 20 years from the date of issuance.
• It can be extended for an additional 10 years upon request.
• Renewal applications must be submitted during the 19th year of the license period.
• Any changes in the company’s name, address, or operations must be reported to the DoT with supporting documents.

Compliance Obligations

To maintain the validity of the Other Service Provider license, organisations must adhere to the following compliance requirements:

1. Annual Returns:
   • Submit an Annual Return detailing activities, compliance status, and operational updates.
   • The return must be filed within 6 months of the financial year’s end.
2. Terms and Conditions:
   • Use telecom resources only from authorised service providers.
   • Maintain logical separation of resources for domestic and international services.
   • Prohibit interconnectivity between domestic and international Other Service Providers.
3. Active vs. Dormant Status:
   • Non-compliance or failure to submit returns for three consecutive years results in being moved to the Dormant List.
   • Registration may be cancelled after two additional years of inactivity.

Key Conditions for Other Service Provider Operations

• OSPs cannot provide switched telephony services.
• Sharing of telecom bandwidth is permitted only within the same company or group, with logical separation.
• Internet connectivity must be obtained through authorised Internet Service Providers (ISPs).
• Network diagrams must be submitted to DoT for verification.

Cost Breakdown for Other Service Provider Registration

Additional Costs:

• Bank guarantee for combined licenses: ₹50 lakh

Recent Developments in OSP Regulations

The Telecom Regulatory Authority of India (TRAI) has been actively revising the regulatory framework for Other Service Provider operations. In March 2019, TRAI released a discussion paper addressing:

• OSP registration validity and fees
• Security and interconnectivity requirements
• Inclusion of internet-based services like WhatsApp and Skype under Other Service Provider regulations

The government aims to simplify processes and address technological advancements to ensure a balanced regulatory environment.

Common Challenges in OSP Registration

1. Document Preparation: Ensuring accurate and complete documentation can be time-consuming.
2. Site-Specific Compliance: Organisations with multiple locations must manage separate registrations and compliance for each site.
3. Adherence to Terms: Maintaining logical separation of resources and avoiding interconnectivity violations require meticulous planning and monitoring.

Why is Other Service Provider Registration Important?

1. Legal Compliance: Ensures the lawful use of telecom resources.
2. Operational Legitimacy: Enhances credibility with customers and stakeholders.
3. Regulatory Oversight: Promotes transparency and prevents misuse of telecom infrastructure.

Conclusion

OSP Registration is a critical requirement for businesses leveraging telecom resources to provide IT-enabled services. By adhering to DoT regulations and maintaining compliance, organisations can operate seamlessly and avoid legal complications.

If you are planning to start an OSP-based business, ensure that your company is registered as a Private Limited Company and consult experts to simplify the registration process. Proper documentation, timely compliance, and adherence to regulatory guidelines will ensure the smooth operation of your business.

For hassle-free Other Service Provider registration, consider seeking professional assistance to navigate the complexities of the process and secure your license promptly.