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NASSCOM proposes guidance on essential contract terms for Cloud Telephony

NASSCOM has consistently working with TRAI to resolve the issues that are impacting Cloud Telephony start-ups and Product companies. Cloud telephony services face the danger of disruptions arising from the 13th amendment in the TCCCP, due to the following reasons:

1.  A cloud telephony service provider is unaware when their clients is initiating an illegal SMS campaign which maybe publishing the numbers which the cloud telephony
company has actually subscribed to and has assigned it to the particular client.

2.  Therefore, Telephone number on which the commercial transaction is solicited included in the 13th amendment, can potentially put at rest the entire telecom resources of the cloud telephony operator without their knowledge and/or control.

3.  As a service provider, they have no knowledge and little control on the messages that are being sent by the clients and they are not a direct beneficiary of such call back requests.

The TRAI believes that companies should draft robust contracts which clearly prohibit any unlawful action and also have provisions for penalty.

NASSCOM has prepared a guidance note which suggests certain provisions that maybe incorporated in the service contract that will deter clients from undertaking unlawful activities like unauthorized bulk sms for marketing.

The guidance note is based on the provisions in existing contracts and suggestions from TRAI, and will be essential in case of client agreements. The provisions and the action points as suggested will not only allow companies to take planned action but will also help in demonstrating their intent to prevent any transgression of TRAI regulations.

The guidance paper is uploaded on our website:

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