BSNL AONT-100c, AONT ups Backs up!?

Hey there i just got the BSNL FTTH connection with unlimited plan 675/- 2mbps upto 5 gb and 1mbps beyond!

They fitted me with AONT-100c modem with AONT ups that came with it! Does this provides backup in case of power failure!? when i checked manual it comes with a battery and it mentions it provides backup to the modem!!

It has 3 led indication AC-green, DC-green, Battery-Red also there is no backup during power failure, when i asked the BSNL service men about it he said it act as some sort voltage stabilizing unit and does not provide backup power of such!!! is it true!? i would like to know!!

Please respond !!
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The ups provided is for converting the wall AC supply to stable DC. The battery inside is used in the circuit as clamper for coverting AC to DC.