Options before telecom to furnish guarantees for clearing AGR dues

dot osp registration

Introduction

The issue of Adjusted Gross Revenue (AGR) is literally giving sleepless nights to some of the telecom majors. The matter has generated enough heat in India with some like Vodafone threatening to quit its operations in the country. However, things are finally showing semblance of normalcy with some flexibility being given to telecom operators with regard to AGR. The Telecom majors such as Vodafone-Idea and Bharti Airtel have plans to provide license, spectrum, tangible net assets and tax refunds as security to assure the honoring of AGR dues.

The problem persists

As part of the hearing process with regard to the AGR a week before, the Supreme Court has stringently sought a reply from the telecom operators, regarding the roadmap, timeline and security related to the AGR payment. This was part of the response regarding the plea that the Department of Telecommunication or DOT filed, permitting telecom players to pay the AGR dues in a flexible way over the next 20 years. However, the apex court was of the view that staggered payment can only happen if there is a clarity over schedule or security on the part of the telecom players. According to a reliable source, “Telecom operators are presently evaluating the net worth of their tangible assets. This is very critical in getting clarity over the security aspect the Supreme Court had sought from them.” But the woes regarding the AGR are only exacerbating despite having a clear idea with regard to the way forward concerning the AGR dues. The problem began when the National Company Law Appellate Tribunal accepted spectrum within the ambit of asset in a hearing, but the Department of telecommunication disagreed with it. So, the whole matter of whether spectrum qualifies as assets lies with the Supreme Court.

Security clearance through assets sans spectrum

For the telecom major duo, Vodafone Idea and Bharati Airtel, the privilege of the tax refunds is there and the same amounts to INR 35,000 Crore. Also, there is a provision of some funds from the pending public sector units and the same comes to INR 20 thousand Crore. With such sources of revenue, the two telecom operators can breathe a little easy regarding the issue of AGR.

Guarantee is proving to be a thorn in the flesh for telecos

Despite Supreme Court asking the telecom players to furnish guarantee acting on the plea of DoT, things don’t look very promising for the telecom operators. According to a source, “ the banks have already been stretched a lot by the telecom operators that providing more guarantee would be out of the question. Also,there exists another problem wherein one has to furnish the security of 70%-90% of the loan dues to obtain the loan amount. This is very much impossible considering the situation that the pandemic had on the businesses and economy as a whole. This prompted Vodafone-Idea to say that it can’t provide a guarantee.

Finally,

The signs are not too favourable for telecom companies with regard to the AGR with an obstinate Department of Telecommunication breathing down their necks. As of now, the situations the telcos are in turn out to be a bit ominous as they are looking at projecting spectrum, license and tax refunds as guarantees related to AGR. It is very difficult to pin the blame on anyone for this matter. In reality, it is the DoT that grants the telecom operators the OSP License. So, it is in the best interest of telecom players to file the tax returns appropriately and on time. In case, the telecom businesses find the task to challenging then they should take the help of tax experts. Had these operators filed the returns properly things would not have reached this stage. This proves that filing tax returns is important otherwise a headache like AGR would always crop up to take away your peace and happiness.

How To Register DOT OSP License For Call Centres In India ?

dot ops license

How to register a call centre in India

Other Service Providers (OSP) are the service provider of IT and telecommunication services. OSP can take telecom services from authorized telecom service providers. These services can be provided in the field of banking, medicine, e-commerce, aviation, education etc. telecom resources are telecom facilities used by OSP. There are two kinds of OSP domestic and International. 

OSP services need to get registered through Department of Telecommunication (DOT). Services can be provided according to the terms and conditions formulated by telecom commission in February, 2000. There are certain services like call center, IT Services, and telebanking.

Requirement of OSP Registration:

  • Incorporation certificate of the company.
  • Memorandum of Association and Articles of Association.
  • Board resolution of power of attorney authorizing the authorized signatory with self attested signatures.
  • Nature of business or activities of proposed OSP.
  • Directors list of company
  • The present shareholding pattern of the company and equity details.
  • A number of seats in the call centre
  • Schematic diagram of the call centre layout and details of equipment
  • Address of the location connected with leased lines or where incoming only PSTN lines are terminating
  • The bandwidth of the leased lines

Steps to Register:

  • First you need to visit website www.dotosp.gov.in
  • Fill form 1 where all the information about the services are needed to fill.
  • Submit the important documents mentioned above. The documents should certify from Company Secretary, Director, Statutory Auditor, or Public Notary.
  • After it, the authority makes necessary verification and it grants the license valid upto 20 years from the date of such Application.
  • The Company can have more than one OSP which requires an amendment.
  • The processing fee is to be paid Rs. 1000 can be in the form of DD or other banking norms.

Terms and Conditions:

  • Telecom resources of OSP should be from an authorized telecom service provider.
  • After examination of a network diagram of the network proposed to be set up by the OSP from Authorized telecom service provider.
  • OSP should submit the copy of the network diagram approved by the telecom service provider to VTM cells for records and verification.
  • OSP can have internet connectivity from an authorized internet service provider.
  • Permission to share OSP with Telecom Bandwidth with other activities of the same company or group of companies.
  • Restriction has been proposed that the OSP shall not, without the prior written consent. Directly or indirectly, assign or transfer this registration in any manner.

 

A comprehensive guide to start a BPO in India

For every aspiring entrepreneurs who desire to start a BPO the procedure for its Registration may sound tedious. In this blog we have outlined certain easy steps which you can follow to start a BPO in India.

When it comes to Indian Stereotypes, talk about the call centres come at the top of it. But, regardless of how it might look like, there is a certain amount of untapped potential of profit in this industry. This fact is pretty evident by the fact that several start-ups are actually moving forward with their dreams of having their own Business Processing Outsource (BPO). However, this entire prospect of BPO centre is not quite easy. It requires patience, lots of legal hurdles, and lots of documents that can make the entire process quite daunting.

However, with this blog, we aspire to ease your pain on how to start a BPO in India. Once you are done with this blog, you will have a more intimate understanding of the documents you require and the acts which you need to perform.

Step 1- setting up your BPO institution as a legal entity

  • Before you move on to setting up your Business Processing, you need to make sure that it stands as a proper legal entity. When it comes to India, you should sick with the most popular and the most feasible legal entity. Private Limited Company is the most relevant one. You can read about that how to give your business this legal identity in one of our other blogs.

Step 2- adhere to the purpose of BPO

  • A BPO is meant to provide services, these services come under other service providers (OSP). Therefore you will need to provide an OSP registration to your legal entity.

Step 3- Adhere to the following guidelines

  • Here is a succinct outlook on the guidelines that you need to follow while setting up a BPO:
  1. There are exclusivity for call centres in India.
  2. They are registered under OSP category defined in section NTS 99.
  3. The validity period is 20 year.
  4. 100% FDI is permissible in all of the call centres in India
  5. There should be no change in foreign or Indian promoters to the call center until approved by the competent authority
  6. The resources that the call centre use should have legal standing
  7. The telecom services provided to the BPOs will be based on their approved network diagrams.
  8. There should be no interconnecticity of the international call centre to the domestic one.
  9. The Department of Telecommunication is responsible for providing the adequate approval for interconnecting two domestic centers.

There are several other guidelines which you need to adhere in a letter head that you need to provide along with the following documents:

  1. A DD of 1000 Rupees in the name of “pay and accounts officer (HQ), DOT”
  2. Location of the termination sites of IPLC
  3. Bandwidth of that IPLC
  4. Number of seats in the centre
  5. Schematic diagram of the call centre
  6. Name of the foreign/domestic clients associated with the BPO

 

So in case you are looking for DOT OSP license registration in India for your call centres , you can contact BIATConsultant who can help you getting the license with ease .