Case Study

Express Yourself
A through Case study on Airtel Bangladesh Limited.

Subject: Course:

Case study on Airtel Bangladesh Limited Business for 21st century (Bus-101) Husne Ara

Course instructor: Faculty:

Business Administration

shuvo East West University

7/11/2011

2. Title Page

Submitted to
Husne Ara Lecturer, Department Of Business Administration East West University

Submitted by
Md. Nurul Amin (2011-2-10-095) Md. Naimul Haque (2011-2-10-090) Zakia Sultana (2011-2-10-077) Shah Nur Alam Rabu (2011-2-10-091) Tasnim Islam Nahida (2010-2-30-015)

3. Letter of transmittal
July 06, 2011

Husna Ara Lecturer, Department Of Business Administration, East West University Hna@ewubd.edu

Dear Madam, It is of great honor and delight to us to present you our final report prepared as equipment for our Business for 21st century Course (BUS-101). The entire duration of preparing this report has been immensely helpful to us, giving us a golden opportunity to look outside the regularclassroom and move to the real world on Airtel Bangladesh Ltd. A lot of lesson was learning and a vast amount experience was gained. Developing interpersonal skills, talking formal interviews and of course handling each and every detail with a professional attitude were just to name a few. Truly this will help us in our future life, solving more complete situations and problems and also building a Business structure. We are particularly grateful to Mr. Abdul Kalam Khan for his co-operation in helping to achieve our purpose. We also acknowledge our gratitude to those people who have helped us and passed their valuable comments on the draft term paper. In spite of our limitation and time constraint we have tried our best to cover all the points you mention and hope it will be able to meet your expectation. We shall always be available to respond to any question that you may have in this regard.

Sincerely yours

4. Acknowladgement

ACKNOWLEDGEMENT
There are many people who have enormously helped in the preparation of this Project on Housing Finance In India, we are specially thankful to Lec. Husna ra , faculty of Business Administration who have given us this opportunity to undertake this project. We are thankful to all our friends giving their remarkable contribution and special hanks to t our faculty in charge who not only explained the topics very well but all have thrown a good insight at the practical aspect too.

5. Executive summary

The project is an extensive report on how the Airtel Company markets its strategies and , how the company has been able in tackling the present to ugh competition and how it is coping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the Airtel Com pany. This report also contains the basic marketing strategies that are used by the Airtel Company of manufacturing process, technology, production, policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues. In todays world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its p rofit but also needs to satisfy its customers and should try to build upon from there.

6. OBJECTIVES OF THE STUDY

1. To know Airtel Bangladesh limiteds business and its performance thoroughly.. 2. It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved to know its beginning, vision, mission, objectives, network system, price, distribution for our academic future.

7. Table of contents
1. Title Fly

2. Title page 3. Letter of transmittal 4. Acknowledgement 5. Executive summary 6. Objectives Of study 7. Table of Contents 8. Main Body 8.1 Introduction 8.2 Beginning of mobile services in Bangladesh 8.3 Company background 8.4 Vision, Mission, Values 8.5 Corporate profile 8.6 Network system and technology 8.7 Product 8.8 Price 8.9 Distribution 8.10 Promotion 8.11 Management and its function 8.12 Human resource 8.13 Competitors 8.14 strengths and weakness 9. Conclusion and recommendation 10. Limitation of study 11. References

8. Main Body

8.1 Introduction:

Airtel Bangladesh ltd. is a concern of Bharti Airtel Limited, a leading global telecommunications company with operations in 19 countries across Asia and Africa. Airtel Bangladesh, which formally started its journey in Bangladesh on December 20, 2010, is making a fresh investment of USD 300 million to rapidly expand its operation in the country. As a result of this investment, the overall investment of the company stands in the region of USD 1 billion.

Origin the report:

This is informed that the report on Airtel Bangladesh Ltd. It has been prepared as a Requirement of the course titled Business for 21st century (BUS-101). It has been prepared for academic purpose only.

Methodology:
We use to collect information from various website of business data source to make the whole report. We use Microsoft Word for report making. We also visited the Airtel website for the information. A report is prepared and submitted to the respective course instructor HusnaAra.
8.2 Beginning of mobile services in Bangladesh:

In January 2010, Bharti Airtel Limited, Asias leading integrated telecom services provider, acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAE -based Abu Dhabi Group. Bharti Airtel is making a fresh investment of USD 300 million to rapidly expand the operations of Warid Telecom and have management and board control of the company. This is the largest investment in Bangladesh by an Indian company. Dhabi Group continues as a strategic partner retaining 30% shareholding and has its nominees on the Board of the Company. The new funding is being utilized for expansion of the network, both for coverage and capacity, and introduction of innovative products and services. As a result of this additional investment, the overall investment in the company will be in the region of USD 1 billion. This is Bharti Airtels second operation outside of India. The company launched its mobile services in Sri Lanka in January 2009 on a state -of-the-art 3.5G network. The company crossed the 1 million customers mark within six months of launch on the back of innovative offerings as well as rapid expansion of network coverage and distribution.

Share stake review:

share
Bharat Airtel
Wtil others

Functions
Total 13 functions combine Airtel Bangladesh Limited workforce. These are: Customer Care Supply Chain Management Network Operational Excellence Human Resources & Administration Sales Information Technology Corporate Affairs Finance Marketing Legal & Secretarial CEO Office Corporate Assurance Group

8.3 Company Background:

Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of bicycle parts to one of the largest and most respected business groups in India. With its entrepreneurial spirit and passion to undertake business projects that are transformational in nature, Bharti has created world-class businesses in telecom, financial services, retail, and foods. Bharti started its telecom services business by launching mobile services in Delhi (India) in 1995. Since then there has been no looking back and Bharti Airtel, the group's' flagship company, has emerged as one of the top telecom companies in t e world and is amongst the h top five wireless operators in the world. Through its global telecom operations Bharti group has presence in 21 countries across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. Over the past few years, the group has diversified into emerging business areas in the fast expanding Indian economy. With a vision to build India's finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in multiple formats- small and medium - as well establishing large scale cash & carry stores to serve institutional customers and other retailers. The group offers a complete portfolio of financial services- life insurance, general insurance and asset management - to customers across India. Bharti also serves customers through its fresh and processed foods business. The group has growing interests in other areas such as telecom software, real estate, training and capacity building, and distribution of telecom/IT products. What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the years some of biggest names in international business have partnered Bharti. Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom. Walmart is Bharti's partner for its cash & carry venture. Axa Group is the partner for the financial services business and Del Monte Pacific for the processed foods division. Bharti strongly believes in giving back to the society and through its philanthropic arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children and youth in India. This is Bharti Airtels second operation outside of India. The company launched its mobile services in Sri Lanka in January 2009 on a state -of-the-art 3.5G network. On July 19, 2007, the company crossed the 1 million customers mark in the first 70 days of operation. Airtel Bangladesh had 4.37 million subscribers as of February 2011.

8.4 Vision, Mission, Values:

Vision & Tagline

By 2015 Airtel will be the most loved brand, enriching the lives of millions. lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having this focus we will enrich our own lives and those of our other key stakeholders. Only then will we be thought of as exciting, innovation, on their side and a truly world class company. "
"Enriching

Mission:
We at Airtel always think in fresh and innovative ways about the needs ofour customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more

Values:
Customer service focus Empowered employees Innovative services Cost efficiency

8.5 Corporate Profile:

Name of the Company Chairman Vice Chairman Managing Director Company Secretary Legal Status Date of Incorporation Register Office Line of Business Phone Fax E-mail Website Auditors Tax Consultant

: Airtel Bangladesh Ltd. : Mr. Sunil Bharti Mittal : Mr. Rakesh Bharti Mitta : Mr. Rajan Bharti Mittal : Ms. Vijaya Sampath : Public Limited Company. : January 2010 : Tajwar Center in Banani, Dhaka. : Telecommunication : 1212 from airtel number : 02 - 8951786 : customerservice@bd.airtel.com : www.airtelbd.com : Mr. Nayak and Kishnadwala : Mr. Ayo-ola Apampa

8.6 Network System and technology:

GSM
Airtels GSM network is composed of several functional entities, whose functions and interfaces are specified. Figure 1 shows the layout of a generic GSM network. The GSM network can be divided into three broad parts. The subscriber carries the Mobile Station. The Base Station Subsystem controls the radio link with the Mobile Station. The Network Subsystem, the main part of which is the Mobile services Switching Center (MSC), performs the switching of calls between the mobile users, and between mobile and fixed network users. The MSC also handles the mobility management operations. Not shown is the Operations and Maintenance Center, which oversees the proper operation and setup of the network. The Mobile Station and the Base Station Subsystem communicate across the Um interface, also known as the air interface or radio link. The Base Station Subsystem communicates with the Mobile services Switching Center across the A interface

GSM Architecture
HOME LOCATION

REGISTER

BTS = Base Transceiver Station AuC = Authentication Center OMC = Operation and Maintenance Center PSTN = Public Switched Telephone Network ME = Mobile Equipment

AuC
Equipment ID

Network Management Center

Visitor Location Register

OMC

Subscriber Identity Module Subscriber Identity Module Subscriber Identity

ME

T S

ME

B
T

Base station controller

Mobile switching center

Data communication network

ME

B
T

PSTN

Module

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GPRS/EDGE:
Airtel is providing high speed internet service with edge with their own web site, there are many way people can take their services through different packages, airtel is using higher techonology to provide this packages at a minimum cost.
8.7 Product and services:

Airtel usually offers these products,     Prepaid sim Postpaid sim Handset USB modem

Prepaid sim:
Different people love different things. To cater to all your needs, airtel offers you 4 different packages in one prepaid connection. People can switch between the packages on offer. Prepaid packages are  Adda,  Golpo,  Dolbol,  Kotha, Adda: You are the kind of person who loves to keep in touch with a close group of friends. You like to browse the net when bored and make the most of your time on your phone. 'adda' will give you maximum fnf and all that at fantastic rates. Golpo: If you are someone who loves making long conversations, our 'golpo' package with 24 hrs flat tariff to any number is something you will fall in love with. Talk to any number anytime at a fixed flat rate. Dolbol:

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Airtel is proud to introduce to you dolbol, a one of its kind offer where you can join your own community and talk @ the lowest rate of 29 paisa/min within your community members. It also offers a bundle of other facilities that you were looking for.

Kotha: Share every little moment with the ones you love with airtel 'kot a'-the package plan with 1 h sec pulse from the very first second. People can migrate any of the packages one to other if s/he is a prepaid user.

Postpaid sim:
Postpaid which comes with 3 packages is designed to cater to both your professional and personal communication needs. These are  Airtel exclusive  Airtel classic  Airtel advantage

Airtel exclusive:
Airtel exclusive brings you the highest fnf features and 1 second pulse that will enable you manage your calls efficiently.

Airtel classic:
Airtel classic offers you flexible tariff plans which will help you to explore a wide range of services and keep overall cost to a reasonable limit.

Airtel advantage:
Airtel advantage comes with an attractive flat tariff plan, large close calling circle which makes your communication simple.

Handset:
Sometimes airtel provides some low cost mobile phone with their packages, usually these set are provided for all level of customers. USB modem: Airtel is offering USB Modem for high speed internet through all over the countr , This y modem is very cheap and available for all sorts of people.

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Serveces:

Gaming Zone: People and play and download games through internet. Ring Tones Download your favorite ring tone and have them played every time some one calls you. You can choose to set mono tones, poly tones or true tones depending on your handset compatibility. Call Waiting / Call Hold Call Waiting allows you to handle two calls at a time. You can be on one call, while the network will alert you about another incoming call. You can then put your first caller on hold, while you receive the second call. Missed Call Alert Get SMS notifications of your callers when you were out of coverage or your phone isout of charge or switched off. Voice Mail Service Activate your voicemail service so that your callers can leave messages for you when you are busy in a meeting or traveling abroad. Horoscope Check out your daily horoscope from the Airtel Menu IR SMS IR SMS allows you to stay in touch with your contacts and loved ones via SMS only when you roam around the world. This service gives you the option to receive and send SMS using your Airtel number when you are abroad, without having to activate voice and other regular VAS services. P2P Balance Transfer You can now enjoy P2P prepaid balance transfer. If you are a prepaid subscriber with any of the following four packages, you are eligible for balance trans fer

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Science & Education Use the science & education menu to get updates on science & education.Airtel menu > info zone > science & education

8.8 Price: Postpaid Sim price:

Service types & others Product proposition Selling price Connection price Non-refundable deposit Default credit limi airtel advantage worry free flat tariff bdt 650 bdt 150 bdt 500 bdt 500 airtel classic attractive fnf rates bdt 650 bdt 150 bdt 500 bdt 500 airtel exclusive highest fnf features bdt 1250 bdt 150 bdt 1100 bdt 1100

Note:
y y y y

Preloaded amount will be BDT 20. Preloaded amount will be placed in main account and can be used for any purpose Validity of this preloaded airtime will be 30 days from the day of activation Total bonus of 450 on-net minutes & 450 on-net SMS will be given based on the customers 1st recharge of minimum 50 and above in following manner :

Customer will enjoy 10 on-net minutes & 10 on-net SMS every day for 45 days from 1st recharge of BDT 50 or more.

y y y

Validity of bonus amount will be 01 days from the date of bonus posting. Bonus amount will be disbursed on daily basis. VAS Offerings : Free My tunes subscription for 30 days. Free airtel dhoom subscription for 30 days. Balance Check :

o o
y

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Postpaid tariff plan:

Service types & others tariff Airtel to airtel Airtel to other Airtel to airtel (fnf) Airtel to others (fnf) Sms on-net Sms off-net Sms on-net fnf Sms off-net fnf International sms Internet (per kb) Pulse (sec) No. of fnf Line rent Minimum commitment bdt 0.77 bdt 0.77 n/a n/a bdt 0.45 bdt 0.45 n/a n/a bdt 2.49 bdt 0.02 5 n/a bdt 50 n/a bdt 0.49 bdt 0.94 bdt 0.25 bdt 0.65 bdt 0.49 bdt 0.49 bdt 0.29 bdt 0.29 bdt 2.49 bdt 0.02 5 15 bdt 50 bdt 300 n/a bdt 0.49 bdt 0.89 bdt 0.25 bdt 0.65 bdt 0.49 bdt 0.49 bdt 0.29 bdt 0.29 bdt 2.49 bdt 0.02 1 25 bdt 0 n/a bdt 500 Airtel advantage Airtel classic Airtel exclusive

Minimum usage for line rent waiver bdt 300

NB.: all (previous & new) tariffs are excluding vat

Prepaid sim price:

Service types & others Product proposition Selling price Connection price Non-refundable deposit Default credit limi Adda Dolbol Kotha Golpo

bdt 150 bdt 150 bdt 000 bdt 000

bdt 150 bdt 150 bdt 000 bdt 000

bdt 150 bdt 150 bdt 000 bdt 000

bdt 150 bdt 150 bdt 000 bdt 000

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Pripaid tarrif:

Dolbol offers:
feature Voice call Sms Pulse FnF feature Gprs tariff(excluding vat) onnet BDT 0.59 BDT O.49 30 seconds no fnf 0.015paisa per kb

community BDT 0.29 BDT 0.29

offnet BDT 1.19 BDT 0.49

Adda offers:
24 Hours Tariff Voice Calls Outgoing: (in Tk. per min) other Operator Airtel FnF other operator FnF SMS Calls Outgoing: (in Tk. per SMS) TK 0.59 TK 1.19 TK 0.29 TK 0.69

8.9 AIRTEL DISTRIBUTION CHANNEL:

Airtel Company

Rural area

Urban

Rural super

Distributor

Rural distributor

FSE

FSE

Retailer

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In Urban Areas
 Airtel directly supply its products to the distributors in Urban Areas through Territory Manager  Territory Manager distributes the products as per demand for individual distributors, which is scheduled as per the target for the territory.

In Rural Areas
Same procedure is followed in the rural areas but the distribution system is completely different from Urban Area and the Margin is also different Companys supply systemto the territory manager is same procedure as per urban areas. The products at first distributed to the RS (Rural).

Distribution
15 Urban Rural 50 others 35

A product distribution report is being given in this chart.

Airtel network coverage:

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Airtel has covered worlds most of the area, and expending its area day by day, except some particular area, Airtel has expended its network all over the Bangladesh, a chart below is sowing its coverage in Bangladesh.
3

covered
uncovered working

93

Within some years Airtel will expand its network all over the world.

8.10 Promotion:

Airtel Bangladesh Limited has done many promotional activities. Some of them are mentioned below..  Making call charge very low.  Large number of FnF list  Being sponsor at many celebration  High qualitative advertising on TV, Radio etc  Giving SIM at a low price  Giving great offer with a new SIM Not only through these policies but also through many other policies Airtel Bangladesh limited is advertising for their network.

Using:
     Advertising Print Media Electronic Media and Billboard Internship

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8.11 Management structure:

A Management structure is being shown below.

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8.12 Human Resource and Practices:

Airtel is the pioneer in the field of human resource management, employee care and competence development in Bangladesh. Airtel is currently employing approximately 5000 people of which 84 % is under 31 years old. The employees are spread out in six office zones throughout the country, with Dhaka being the largest with 3561 employees. Most of the staff has university backgrounds within fields such as management, marketing, economics, finance and engineering. In 1997 the number of expatriates working in the company was close to 90.Today however, there are only five foreigners employed on a regular basis, and another five on time -limited contracts. The government demands that a ratio of 1:20, expatriates to locals be kept. The figures are therefore not only within the government requirement, but significantly so. The situation is supposedly a lot different in many of Airtel competitor companies. Recruitment Process: Airtel usually recruit through two processes. 1. Internal source 2. External source

Internal source:
Sometimes they recruit people through promotion, relatives, and references. But most of the time they follow the external sources.

External source:
An external source is being shown in the picture that Airtel follow in recruitment process:

Training and Human Resource development

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According to the annual report the aim of this process is to Set direction, Manage performance and develop individual, Team and organizational capabilities to deliver business results. Airtel governs the HR process through an annual survey conducted among all employees. In addition, a compulsory appraisal dialogue is held annually between the individual worker and his superior. These measures give Airtel management a broader picture of how employment situation looks in the company. The feedback is used to strengthen the organization. In particular, the appraisal dialogue identifies individual wishes, goals and training needs for further professional development. Airtel offers employee training on several stages, in addition to a general introduction for new employees. At junior management level, Airtel in collaboration with the British Council offers in-house training in basic management skills and workshops. Furthermore management training at junior and middle levels is offered in collaboration with the Indian Institute of Management, Finally for senior management Airtel offers a module based program in cooperation with Stockholm School of Economics. This program is custom mad for e GrameenPhone. Outside of these standardized programs, we also offer 100 scholarships to employees who want to take an Executive Master of Business and Administration (EMBA) and covers 75% of the tuition fees. This program is part time. The need fo training is related to the job of each individual r employee and mainly identified through the annual compulsory appraisal dialogue.

8.13 Competitors:

There are many competitors of Airtel in Bangladesh Market. Some of the main competitors are..  Grameenphone bangladesh Limited  Banglalink  Robi  Teletalk Bangladesh

Share:
As at 31 March 2011 the market share of those six companies were, Grameenphone had a market share of 43.8%, Banglalink (27.6%), Robi (18.2%), Airtel Bangladesh, previously Airtel (6.3%), Citycell (2.4%) and Teletalk (1.6%). Competition among operators is intense and tariff levels are among the lowest in the world.

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A pie chart is given below about shares of the competitors:

MARKET SHARE

GRAMEEN PHONE BANGLALINK

ROBI AIRTEL TELETALK

CITYCELL

8.14 Strength and weakness

Strength

Airtel Bangladesh Limited has some strong side for its business for which it can run its business more effeciently. The strong sides are..  Increasing customers  Greater services for new customers  Able to Providing low call rate and SIM price  High manpower inside the company  Worldwide reputation of the company
Weakness

 Besides the strong sides, Airtel also has some weak sides. The weak sides are..  Network systems is not so high  Not available in all local area.  High competition in market that can hampar its business

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9. Conclution and recommendation

It is already discussed that Airtel is one of the leading company in the mobile telecommunication industry in Bangladesh. This has been possible because it has a created a superior image in comparison to the other operators. In other words, Airtel has a clear advantage over competitors. Airtel has some additional advantageous features in comparisons to its competitors. There is easier access to person to person contract. Another important thing is thatAirtel users are mostly satisfied with the initial price of Airtel connections and handsets. Before Airtels introduction to the market, mobile phones were virtually out of reach to the major part of the current market. Moreover, Airtel subscribers are happy with the country wide network. However, there is dissatisfaction among the Airtel users with the service of the company. Many important factors are acting as reasons behind this overall dissatisfaction. Quality of airtime and network availability is not satisfactory. Airtel Phone connections are difficult to reach sometimes. It so happens that the subscribers used to pay extra money to get the access. This is especially true for prepaid service. It is encouraging that very recently situation has improved to a certain extent bases on the findings in this report. Most of the subscribers are not happy with the billing rate of Airtel. They think it is too high in the context of Bangladesh, But they are still using the service as Airtel is still more easily accessible. Many newer companies are coming up with the lower price; it is thus a great challenge to airtel to face.

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10. Limitations of the Study:

Airtel basic strategy is widening its market through its emerging countrywide network. As a result of this strategy, the subscribers are from different segments or from different income levels. Moreover, the subscribers are scattered all over the country. The time constraint confined the study mostly on the data collected in Dhaka zone. Moreover, it was not possible to get all required internal information of the company as these are treated as confidential to the company

11. references

Text B

Internet Web sites:

http://www.airtel.com.bd http://www.airtel.com. http://www.jetro.go.jp/bangladesh/eng/link_files/imp_bdmc.html http://www.cpd-bangladesh.org/

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ks:

,International Marketing. Naresh K. Malhotra, Marketing Research David L. Loudon ,Consumer Behavior OXFORD Business Dictionary

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