In India, call centres are mandated to register as Other Service Providers in the telecom industry. The Department of Telecommunications, Government of India, unveiled the “New Guidelines for Other Service Providers” on November 5, 2020. These guidelines supersede the “Terms and Conditions – Other Service Provider Category” which had been in effect since 2008. The adoption of the “New Guidelines” is geared towards streamlining compliance requirements for OSPs.
The revisions introduced by the New Guidelines not only enhance clarity but also relax regulations for the Business Process Outsourcing sector. This is expected to boost India’s attractiveness as a preferred outsourcing destination. In this vlog, we shall see the benefits of DOT OSP registration for these centres.
Understanding OSP Registration in India
Before going into the benefits of DOT OSP registration, let us understand the concept first. OSP registration in India is a fundamental process that involves registering a business with the government. This registration is imperative for obtaining essential documents and licences necessary for the smooth operation of your business. Moreover, it serves as a vital tool for monitoring your services, proving particularly beneficial when contemplating business expansion.
Importance of OSP Registration
The registration process plays a pivotal role in acquiring a government licence, ensuring that your business can offer services without encountering legal complications in the future. It is mandatory for all service providers and is especially compulsory for businesses involved in telecommunications services or Internet access in India. Additionally, registration is indispensable for businesses offering various services such as cable TV and satellite TV.
The Department of Telecommunications in India imposes specific requirements on Other Service Providers. To provide services like telebanking, tele-trading, telemedicine, e-commerce, network operation centre, call centre, and other IT-enabled services using authorised telecom resources, OSPs must obtain a DOT OSP licence. This regulatory measure ensures compliance and lawful operation within the telecommunications sector in the country.
DoT Guidelines for OSPs
The Department of Telecommunications has established guidelines for Other Service Providers in India. The OSP registration process is facilitated online through a registration form available on the official website. Adhering to DoT guidelines is essential for OSPs to operate legally and efficiently.
Changes in DoT Guidelines for OSPs 2020
In response to the COVID-19 pandemic, the DoT introduced significant changes to OSP regulations through the 2020 Guidelines. These changes aimed to simplify the OSP structure by eliminating cumbersome requirements that were previously in place. Some notable modifications include:
- Remote Business Operations: The revised regulations now permit OSPs to conduct their business from any location within India, including remote work setups such as home offices.
- Elimination of Bank Guarantees: Previously mandatory, the need for OSPs to provide bank guarantees, specifically a bank guarantee of 1 crore per seat, has been eliminated under the new guidelines.
- Exemption from Registration for OSP Centres: OSP centres in India are no longer obligated to undergo the registration process as per the updated regulations.
- Infrastructure Sharing: The revised guidelines allow for infrastructure sharing between OSPs, promoting collaboration and resource optimisation.
- Recognition of Remote Work as OSP Agent: The concept of working remotely or from any location is now officially recognised as an expanded agent role or OSP remote agent under the updated regulations.
Benefits of DOT OSP Registration
The revised DoT guidelines for Other Service Providers in India bring forth several benefits of DOT OSP registration, marking a positive shift in operational dynamics. Key benefits of DOT OSP registration include:
1. Cost Reduction: One of the major benefits of DOT OSP registration is that OSPs stand to benefit from lower operating expenses, including reduced expenditures on location, space rent, and utility bills. This financial relief contributes to improved cost-efficiency.
2. Enhanced Work-from-Home Adoption: Further, among the benefits of DOT OSP registration, the guidelines facilitate a more extensive adoption of the WFH model by alleviating constraints. This flexibility is expected to enhance efficiency in the service delivery model.
3. Freedom in Remote Centre Setup: Businesses now have the freedom to establish remote centres anywhere in India. This liberation is among the many benefits of DOT OSP registration, which allows for the hiring and utilisation of personnel without being bound by geographical constraints or local regulations.
4. Clearer Rights for WFH Roles: The guidelines treat WFH roles as extended or remote agent positions, establishing clearer rights and obligations for employees. This approach offers one among many benefits of DOT OSP registration, which considers employees’ homes as extensions of company offices, reducing security and regulatory barriers to data access outside the traditional office setting.
5. Relaxed Infrastructure Requirements: The technology and connectivity infrastructure requirements for enabling WFH have been relaxed and has become one of the primary benefits of DOT OSP registration. This includes a departure from strict demands for static IP addresses and pre-established location-based networks.
6. Fortification of Remote Workers’ Rights: The new rules bring many benefits of DOT OSP registration as they contribute to strengthening the rights of remote workers, paving the way for recognising the legal status of WFH under Indian labour laws. This, in turn, addresses concerns related to workplace health and safety.
However, some uncertainties persist, including:
Recognition in Labour Laws: The absence of specific WFH legislation within India’s labour laws raises uncertainties regarding the recognition of work-from-home arrangements and associated employee rights and benefits.
Tax Incentives and Deductions: The guidelines do not provide clear guidance on tax incentives and deductions for both employers and employees engaged in WFH.
IT-BP Companies in Special Economic Zones: The lack of a long-term strategy for temporary easing of import duties and mobility within software technology parks or special economic zones raises questions about the sustained benefits for IT-BP companies located in these areas.
Documents Required for DOT or OSP Licence
After seeing the benefits of DOT OSP registration, let us now look at the documents needed for registration. Obtaining a DOT or OSP licence involves the submission of various essential documents. The required documents include:
1. Certificate of Incorporation: A legal document confirming the company’s establishment and incorporation.
2. MOA & AOA of the Company: The Memorandum of Association and Articles of Association outlining the company’s objectives and internal regulations.
3. Board Resolution: An official statement by the company’s board of directors expressing its decision and approval for obtaining the DOT or OSP licence.
4. Power of Attorney in favour of Authorised Signatory: A legal document granting authority to a designated individual to act on behalf of the company in matters related to the licence.
5. Note on Proposed Business Activity: A detailed description of the business activities the company intends to undertake under the DOT or OSP licence.
6. KYC of Director: Know Your Customer documentation for company directors, providing identity and address verification.
7. List of Shareholders: A comprehensive list of individuals or entities holding shares in the company.
Mandatory Documents Required to be Submitted at dot.gov.in
When applying for the DOT or OSP licence through dot.gov.in, the following mandatory documents must be submitted:
1. Application Form: The official form provided by the Department of Telecommunications for initiating the licence application process.
2. Board Resolution: A reaffirmation of the board’s decision to apply for the licence, ensuring alignment with the official application.
3. List of Directors: Comprehensive information about the directors involved in the company.
4. List of Shareholders: Details regarding the individuals or entities holding shares in the company.
5. Network Diagram: A graphical representation illustrating the network architecture proposed for the provision of services.
6. List of Telecom Resources: An inventory of telecom resources that the company plans to utilise under the DOT or OSP licence.
Ensuring the proper submission of these documents is vital for a successful application process and obtaining the required licence from the Department of Telecommunications.
Final Thoughts
The benefits of DOT OSP registration are multiple, offering businesses a simplified pathway to legal operation in the telecommunications sector. The registration process ensures compliance with government regulations, providing the necessary licences and documentation for seamless business operations. With the recent amendments in guidelines, DOT OSP registration comes with reduced operating expenses, increased flexibility in remote work setups, and enhanced efficiency in service delivery. These changes not only fortify the rights of remote workers but also contribute to the recognition of work-from-home practices under Indian labour laws. Overall, DOT OSP registration empowers businesses with the legal framework and operational flexibility essential for sustained success in the evolving telecommunications sector.
