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OSP License

By Mayashree Acharya

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Updated on: Oct 12th, 2021

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6 min read

Under the New Telecom Policy (NTP), 1999, one of the telecom services is the ‘Other Service Providers’ (OSP). The OSP’s in India give services such as telebanking, tele-trading, telemedicine, e-commerce, network operation centre, call centre, and other IT enabled services through telecom resources provided by the authorised telecom service providers.

Telecom resources mean the telecom facilities that the OSP uses to provide services. It includes the Integrated Services Digital Network (ISDN), Public Land Mobile Network (PLMN), Public Switched Telecom Network (PSTN) and telecom bandwidth provided by the authorised telecom service providers that have a valid licence under the Indian Telegraph Act, 1885.

Under the terms and conditions formulated by the Telecom Commission in February 2000, the OSP’s can use the telecom resources provided only by the authorised telecom service providers. They cannot infringe upon other authorised telecom service providers’ jurisdiction and cannot provide switched telephony.

Types of OSP 

The two types of OSP are as follows:

Domestic OSP

The OSP’s providing services of telebanking, tele-trading, telemedicine, e-commerce, network operation centre, call centre, and other IT enabled services within the national boundaries, i.e. within India, are Domestic OSP’s.

International OSP

The OSP’s providing services of telebanking, tele-trading, telemedicine, e-commerce, network operation centre, call centre, and other IT enabled services beyond the national boundaries, i.e. outside India, are International OSP’s.

Process For Obtaining an OSP License

The domestic OSP or international OSP have to obtain the OSP Registration/License from the Department of Telecommunications (DoT). The process for obtaining the OSP Registration for both domestic and international OSP are as follows:

  • The entities eligible to obtain OSP Registration are companies registered under the Companies Act, 1956 or the Companies Act, 2013.
  • A company should apply for OSP Registration to the DoT in Form-I. It can be applied online on the DoT website.
  • The OSP Registration is location-specific. Thus, a company can have more than one OSP Registration.
  • For multiple registrations, the company should apply for OSP Registration for one site. After obtaining the registration certificate for the first location, the company may apply to the designated authorities for the remaining sites.
  • In case the company wants to change the Point of Presence (POP) or add another POP, it should inform the DoT.
  • The processing fees of Rs.1,000 is to be paid along with the OSP Registration Application.

Documents Required For OSP License

The documents required for OSP Licence are as follows:

  • Certificate of Incorporation of the company issued by the Registrar of Companies.
  • Memorandum of Association and Articles of Association.
  • Board resolution or Power of Attorney giving authorisation to the authorised signatory with their attested signatures.
  • A brief of the nature of business or activities of the proposed OSP.
  • List of the present directors of the company.
  • Present shareholding pattern of the company.

All the documents stated above should be certified by a Company Secretary or one of the directors or statutory auditors, or a Public Notary.

Validity Of OSP License

The validity of the OSP Registration/License is twenty years from the date of its issue. The validity of the OSP Registration can be extended for another ten years at one time after the expiry of twenty years on the request of the OSP. The request for an extension of the OSP License must be made during the 19th year of the registration period. 

The decision of the DoT will be the final decision regarding the grant of extension. The OSP should inform the DoT of any changes in the company’s name or address stated at the time of registration and also produce the supporting documents.

Compliances to Adhere After Obtaining OSP License

The OSP needs to submit ‘Annual Return’ within six months of completion of the financial year in the prescribed Performa to the registering authority. The annual return should state the details of the activities of the OSP in the previous financial year and the status of their continuance of the OSP operations. The operating OSP’s will be put in the ‘Active OSP List’. The OSP’s who fail to submit the annual return for consecutive three years will be put on the ‘Dormant List’, and their registration will be cancelled after two years.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice. It should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

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Quick Summary

Under the New Telecom Policy (NTP), 1999, OSPs in India provide various services and need to obtain OSP license from Department of Telecommunications. Two types of OSP are domestic and international. Documents required for OSP license include Certificate of Incorporation, Memorandum of Association, and Board Resolution. OSP license validity is 20 years and can be extended for another ten years. Annual returns must be submitted to adhere to compliance.

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