DOT stands for Department of Telecommunication while OSP refers to Other Service Providers. As per the new telecom policy (NTP) 1999, certain businesses, also known as Other Service Providers (OSP), must acquire a DOT (OSP) registration before commencing operations. It's a requirement for any business falling under this category to possess a valid licence to operate lawfully. These service providers, identified as OSP, utilise telecom resources and include various services such as BPO or KPO Services, Voice-based or Non-voice-based Call Centres, E-commerce Companies, Tele-banking, Tele-medicine, Tele-education and all other IT-enabled services.
Only a company registered under the Companies Act of 2013 holds eligibility to apply for the DOT (OSP) registration. This licence enables them to access telecom resources and infrastructure dedicated to communication purposes, provided by authorised telecom service providers approved by the Department of Telecommunication.
Understanding DOT OSP Registration and Licence in India
In India, the registration of Other Service Providers (OSP) is an important process governed by the Department of Telecommunication.
OSP, an abbreviation for "Other Service Providers," refers to entities in India providing diverse services using telecommunications resources. These services include telebanking, tele-education, telemedicine, etc.
The registration of OSP entities goes through a specific process that varies based on the location of the OSP centre. The process is overseen by the Telecom Enforcement, Resource and Monitoring (TERM) Cells responsible for the respective regions.
Significance of OSP Registration
DOT (OSP) registration is important to ensure the legal compliance and operational legitimacy of service providers in India. This registration enables the Department of Telecommunications to oversee and regulate OSP activities, ensuring the efficient and secure utilisation of telecom resources across the nation.
Compliance with DOT regulations allow OSPs to play a significant role in the advancement and evolution of India's telecommunications industry, delivering a diverse array of valuable services to the public.
Types of DOT (OSP) Registration in India
The DOT (OSP) registration is a very important procedure for companies providing telecom-based services in India. It ensures compliance with regulatory standards and contributes to the overall growth of the telecommunications sector. Understanding the types of DOT (OSP) registration is vital for service providers operating in this domain. These types include:
- International DOT OSP Licence:
This kind of DOT (OSP) registration is required for entities providing telecom-related services beyond national borders.
- Domestic DOT OSP Licence:
Entities offering services within national boundaries must apply for a Domestic DOT (OSP) registration.
- Domestic & International DOT OSP Licence:
Companies offering services both domestically and internationally need this type of DOT (OSP) registration. In case a company operates both domestic and international telecom services from a single premise, a Bank Guarantee is also required.
Cost of DOT Licence Registration Process in India
- Domestic OSP DOT Licence
- Cost: Rs 15,000
- Time Period: 20 days
- International OSP DOT Licence
- Cost: Rs 15,000
- Time Period: 20 days
- Domestic and International Licence
- Cost: Rs 180,000
- Time Period: 30 days
Types of Companies Requiring DOT OSP Licence in India
The types of companies requiring the DOT (OSP) registration in India include:
Type 1: Telebanking
Telebanking is a service provided by banks to facilitate paperless transactions for their customers, eliminating the need for physical visits to a bank branch.
Type 2: Telemedicine
Telemedicine offers a modern approach to providing healthcare services remotely, allowing for emergency medical care and guidance to be delivered via phone or internet.
Type 3: Tele Education
Tele Education utilises telecommunication equipment to effectively deliver education to remote areas, enabling people in distant locations to access educational resources.
Type 4: Tele Commerce
Tele Commerce involves the direct marketing of products or services to customers through telecom mediums, which may include sales through TV programs.
Type 5: Call Centre
Call Centres, including a range of BPO and KPO services, are businesses that manage a high volume of calls for commercial purposes.
Type 6: Network Operation Centre
Network Operation Centres are typically established by Internet Service Providers (ISPs) to monitor and control network traffic within specific geographic areas.
Eligibility for Obtaining DOT (OSP) registration
A DOT (OSP) registration can be obtained by:
- A Private Limited Company registered under the Companies Act, 2013
- A One Person Company registered under the Companies Act, 2013
Key Points to Note for DOT (OSP) registration:
- OSP and DOT licences are essentially the same.
- The Department of Telecommunication (DOT) is responsible for granting the OSP or Other Service Provider licence.
- Both OSP and DOT licences can be issued within 20 working days from the date of acknowledging all required documents.
Documents Required for DOT (OSP) Registration in India
To obtain a DOT (OSP) registration in India, it is a mandatory requirement that the applicant entity be a Private Limited Company. Business owners planning to start BPOs, call centres, e-commerce or other IT-enabled services must register as a private limited company. The necessary documents for DOT (OSP) registration application include:
- Certificate of Incorporation of Private Limited Company
- Memorandum of Association, Articles of Association and Certificate of Incorporation of the company
- Board Resolution for director authorisation to file an application
- Details of the List of Directors & Shareholders of the company
- Demand Draft
- Address Proof of the Company – INC-22 form
- List of Clients
- Know Your Customer (KYC) details of all Directors
- Income Tax Return of the company for the last three years
- Latest Telephone Bill or MSEB Bill of the registered office address
- Networking Chart
- Details about the Proposed Business Activity
Please note that the above-mentioned documents should be certified by a Director of the Company, Company Secretary, Statutory Auditor or Public Notary.
Mandatory Documents Required for Submission at dot.gov.in for DOT (OSP) Registration
The documents needed for submission at dot.gov.in for the DOT (OSP) registration include the following:
- Certificate of Incorporation issued by the Registrar of Company
- Memorandum and Articles of Association
- Board resolution or Power of Attorney authorising the authorised signatory with attested signatures
- A note on the nature of business/activities of the proposed OSP
Additional Documents to be Submitted if Actual Information Differs from Mandatory Documents include:
- List of present Directors of the Company
- Present shareholding pattern of the company indicating equity details (Indian Equity and Foreign Equity)
Key Conditions for DOT (OSP) Registration
- Registration for Firms providing Application Services:
- Firms seeking registration for Application Services must adhere to the following conditions:
- They should not infringe upon the jurisdiction of other Authorized Telecom Service Providers.
- They are prohibited from offering switched telephony services.
- Eligibility Requirements for OSP Registration:
- Entities eligible for DOT OSP registration must be a company registered under the Indian Companies Act, 1956 or the Act of 2013.
- Companies interested in OSP registration should submit their applications in the prescribed proforma provided by the Authority, with details of the concerned authorities (as listed in the annexure to the Application Form).
Procedure for Obtaining DOT (OSP) Registration
The process of obtaining the DOT OSP registration involves the steps as given below:
- Establish a Business Organisation:
You cannot register for a DOT OSP registration as an individual or a partnership. Before seeking OSP registration, you must establish and register your business as a private limited company.
- Gather the Required Documents:
While there are not many documents required for obtaining a DOT Licence for BPO, it's essential to collect and prepare the necessary documents. Ensure that you sign, scan, and organize them in a proper filing system.
- Online Submission of the DOT OSP Registration Form:
The SARAL Sanchar website is the designated platform for submitting your OSP registration application. Be sure to include the DOT BPO registration fee with your application. While the entry fee is usually consistent, it's important to be aware of any specific requirements or guarantees.
- Obtain your OSP DOT Certificate:
Once you meet the requirements, you will be granted an OSP registration number along with your OSP DOT Certificate.
Validity of OSP Licence
The validity of the OSP Registration or Licence is for a period of twenty years starting from the date of its issuance. It is possible to extend the OSP Registration for an additional ten years, but this extension can only be requested once the initial twenty-year term has expired. To initiate the request for an extension of the OSP Licence, the OSP must submit their application during the 19th year of the registration period.
The Department of Telecommunications holds the ultimate authority to decide whether to grant an extension. In this regard, the decision made by the DoT is considered final. Furthermore, it is imperative for the OSP to keep the DoT informed of any changes related to the company's name or address, which were originally provided at the time of registration. In such cases, the OSP is required to submit supporting documents to validate these changes.
Registration Validity in brief:
- The registration licence is normally valid for 20 years.
- If a company shares infrastructure between Domestic and International Registration, the initial validity is 3 years, extendable for an additional 3 years.
Registration Compliance for OSP Licence Holders
Once the registration process for an OSP is approved, it is typically valid for a duration of 20 years, unless otherwise specified. In terms of compliance, OSPs are required to submit an "Annual Return" to the respective Department of Telecommunication (DOT). This return should detail the activities and operations undertaken by the entity, along with the current status of the OSP. The renewal of the annual return for the OSP Licence should be submitted within 6 months of the financial year's completion.
Terms & Conditions for Running OSP Operations
- Authorisation of Telecom Assets/Resources:
OSP entities are permitted to acquire telecom assets or resources exclusively from an Authorised Telecom Service Provider.
- Analysis of Network Diagram:
Authorised Telecom Service Providers may supply telecom resources to OSPs after reviewing the network diagram for the intended setup by the Other Service Providers. This is done to verify the bona fide use of these resources.
- Network Diagram Submission:
OSPs are required to submit a copy of the network diagram, duly authorised by the Telecom Service Provider (TSP), to the VTM Cells for record-keeping and verification purposes.
- Responsibility for Compliance:
Both the Authorised Telecom Service Provider and the OSP are held responsible for any violations of the terms and conditions governing the use of Telecom Resources, as stipulated in their respective licences or registrations.
- Internet Connectivity Requirement:
Other Service Providers must establish Internet connectivity through an Authorised Internet Service Provider.
- Sharing Telecom Bandwidth:
OSPs are permitted to share their Telecom bandwidth with other operations within the same Company or group of companies. However, it is imperative for OSPs to ensure logical separation between the Telecom Resources used for their other activities and those allocated for OSP operations. There should be no interchange of voice/non-voice traffic between them.
- Restriction on Domestic-International Interconnectivity:
Interconnectivity between Domestic OSP and International OSP is strictly prohibited and not permitted under the specified terms and conditions.
Why Choose StartupFino for DOT (OSP) Registration?
StartupFino is a company that specialises in offering complete services for DOT (OSP) registration. We offer comprehensive assistance, guiding you from initial advice to meeting all the essential requirements and compliance for your registration and licensing.
It's important to highlight that OSPs must strictly adhere to the Terms and Conditions outlined by the Department of Telecommunications and maintain compliance throughout their registration period. To stay updated with these regulations and ensure ongoing compliance, you can connect with our experts at StartupFino.