Amendment in Licensing Framework for VMS, ATS and UMS

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Dec 31, 2021

Amendment in Licensing Framework for VMS, ATS and UMS

The DOT has, by way of Notification dated December 30, 2021, amended the terms and conditions of existing standalone licenses of voicemail services (‘VMS’), audio text services (‘ATS’) and unified messaging services (‘UMS’) and made them part of UL, by adding a new chapter for their authorization in the UL. Some of the key changes to the existing framework introduced by the DOT include: (i) foreign direct investment up to 100% under automatic route being permitted subject to certain conditions; (ii) annual license fees payable by licensees to be 8% of adjusted gross revenue, which is at par with other licensees of UL. Further, it has been clarified that migration from the existing license to the UL will be optional either on expiry or anytime during the validity period of existing license. No further extension of existing license will be permitted, and no new standalone licenses will be issued for VMS, ATS and UMS license under the existing DOT guidelines.

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