India has been accused of failing to meet the deadline set by the US Federal Communications Commission (FCC) to offer universal pay-a-phone service by end of 2019.
But the government says it will still offer the service, despite complaints from users that it is not being provided.
The move is a major setback for the company, which is trying to get a foothold in India.
The government has said that it will work with it to ensure that the telcos offer the plan and that the data rates will be competitive.
The government has also said that a “fast lane” would be created for people with limited internet connections.
The new policy is aimed at improving the service quality for consumers and is not aimed at encouraging more people to sign up for the service.
The telcos are not keen on getting the new service.
They have been lobbying hard for an upgrade, saying that they will face stiff competition from the Indian telecom giants.