Registration Under Other Service Providers OSP Category

Guidelines for Other Service Providers (OSPs)

Based on the New Telecom Policy (NTP) 1999, the registration of Other Service Providers (OSPs) was initially started by Department of Telecommunications (DOT) in the year 2000 to promote the Business Process Outsourcing (BPO) sector by giving them special dispensations, as the sector was at a nascent stage at that time. The guidelines were modified from time to time in 2005, 2008, 2011 and 2012.

 

However, in view of proliferation of Telecom services and advancement of technology and  the receipt of representations from Industry during 2015, a reference was sent to TRAI for soliciting recommendations on the Terms & Conditions for registration of OSPs.  After the receipt of TRAI Recommendations on 21.10.2019 on ‘Review of Terms and Conditions for registration of Other Service Providers (OSPs)’ and the deliberations with various stake holders, the Government drastically simplified the OSP guidelines with an aim to qualitatively improve the 'Ease of Doing Business' for the IT Industry particularly BPO and IT Enabled Services  by first issuing the 'New Guidelines for OSPs' on 05.11.2020. The highlights are:

1. No registration certificate required for OSP centres.
2. Special dispensations for OSPs clearly defined.
3. Allowed Work From Anywhere (WFA) within India.
4. No Bank Guarantee required
5. Interconnectivity between OSP centres of different OSP companies allowed.
6. EPABX at foreign location allowed in case of international OSP.
7. Internet at centralized location -- to be used by other OSP centres.
8. Periodic compliances removed.

            These Guidelines were further amended and the 'Revised Guidelines for OSPs' dated 23.06.2021 were issued which are more liberal and in line with the moto of “Ease of Doing Business” and aims to give further impetus to the growth of IT & ITeS industry in the country.  In addition to the above relaxations, the highlights of the 'Revised Guidelines for OSPs' dated 23.6.2021 are:

1. Distinction between Domestic and International OSPs removed.
2. EPABX can be located anywhere in the world.
3. OSPs can locate their EPABX at third Party Data Centres in India and can also use EPABX services of Telecom Service Providers.
4. Interconnectivity between all types of OSP centres is permitted.
5. Remote Agents can connect directly with Centralised EPABX/ EPABX of the OSP/ EPABX of the customer using any technology including Broadband over wireline/ wireless.
6. No restriction for data interconnectivity between any OSP centres of same company or group company or any unrelated company.

 

BPO/ ITeS Industry is one of the fastest growing segments under the Information Technology sector in the country. It has immense potential to grow at par with global standards and expand further because of strong foundation India has in the IT sector and its inherent cost advantage. The new framework will provide a strong impetus to India’s industry and will make India one of the most competitive IT jurisdictions in the World. With these reforms, the Government of India has sent out a strong signal of its support to the IT industry with a view to encouraging increased investment in the Sector. The reform will certainly unleash the potential of our talented youth by making India as a preferred destination for Information and Knowledge Outsourcing Industry and would further the vision of ‘Atma Nirbhar Bharat’. These guidelines are expected to create better environment for growth of the sector making India a preferred BPO/ITeS destination in the world.

 

NIC-ADMIN on 21.10.2021