RailTel, (NSE:RAILTEL) a "Mini Ratna (Category-I)" Central Public Sector Enterprise is an ICT provider and one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network on exclusive Right of Way (ROW) along Railway track. The OFC network covers all important towns & cities of the country and several rural areas.1

RailTel was incorporated on September 26, 2000 with the aim of modernizing the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network, laying optical fiber cable using the right of way along railway tracks. Presently, optic fiber network of RailTel covers over 58,742 route kilometers and covers 5,848 railway stations across towns and cities in India. RailTel’s high speed OFC Backbone Network shall ultimately cover the entire railway network across the country.

RailTel is an ISO certified company. Its operations are certified with various certifications including ISO 9001:2015, ISO/IEC 20000-1:2018, ISO/IEC 27001:2013 and CMMI Level-4 for its quality management systems, information security management systems, and service management systems, respectively

RailTel has a strategic relationship with the Indian Railways and it undertakes a wide variety of projects including provision of mission critical connectivity services such as video surveillance system at stations and within trains, ‘e-Office’ services and implementing short haul connectivity between stations and long haul connectivity to support various organizations within the Indian Railways. RailTel also undertakes various passenger services including content on demand services and Wi-Fi across major railway stations in India.


YearCompany Milestones 
2000Incorporation YearIncorporated as 'schedule A' PSU under Ministry of Railways
2002Bandwidth LeaseObtained IP-2 Licence to start Commercial operations of leasing bandwidth to private telcos
20051st STM- 16 NetworkEstablished India's 1st STM-16 network enabling higher bandwidth in the Country
2010Excellence AwardReceived MOU excellence award as best PSU in Electronics & Communication Sector
2012Mini Ratna StatusEntered into the exclusive club of Mini Ratna (Category-I) Enterprises
2013DC & Railwire LaunchCreated 1st Tire-III data Canter (DC) and Launched Railwire and DC services on Pan-India basis
2014International EntryCompleted Bhutan JCT project and launched TpaaS Services. Started it's wholly owned Subsidiary, REL
20151st Station WI-FI By RailtelBengaluru became the first station to get Public Wi-Fi by RailTel
2016WI-FI at 400 Station By 2019Initiated wi-Fi at Railway Stations with Google and 1st Station Launched in Jan'16 at Mumbai Central
2018Introduction of E-OfficeRailtel implemented paperless working system in South Central Railway HQ & Guntur Division

Implemented E-Office Over 106 Establishments

of Indian Railways for 1,00,000 Users

2019WI-FI Across 5600+ Stations Completed 


The company classify its operation in two segments.

Telecom Services

Department of telecommunication has provided licenses to Company, namely ILD, NLD, ISP and IP-1 registration for providing various type of telecommunication services in the country. RailTel with its expertise in Telecom & IT domain for over a decade offers an end-to-end managed data services to its customers within the framework of these licenses.

It provides a wide range of Telecom services to its customer as under:

  • Managed Data Services
  • Leased Line
  • Virtual Private Network
  • Internet Leased Line
  • Data Centre
  • Tower collocation
  • Rack and space
  • NLD for voice carriage

Project Work services

To generate revenue through its expertise in telecom field, Company has taken the following projects:

  • National Optical Fiber Network
  • Telecom and IT services related projects
  • Enterprise specific IT & ITES Projects

Industry Overview

The Telecom Services Industry in India

India is the world's second-largest telecommunications market. The telecom market can be split into three segments – wireless, wireline and internet services. The wireless market segment accounted for 98.25 per cent of the total subscriber base as of January 2020. Rural subscribers comprised 43.69 per cent of the total telephone subscribers as of January 2020.2

India is also the second largest country in terms of internet subscribers. As of 2019, India holds the world’s highest data usage per smartphone, averaging 9.8 GB per month. It is expected to double to 18 GB by 2024. App downloads in the country increased from 12.07 billion in 2017 to 19 billion in 2019 and is expected to reach 37.21 billion by 2022.

The contribution of 3G and 4G data usage in total volume of wireless data usage was about 5.72 per cent and 93.65 per cent, respectively, during Q2 FY19-20. Share of 2G data usage remained 0.62 per cent during this quarter. India had over 500 million active internet users (accessed Internet in the last one month) as of May 2020.

Gross revenue of the telecom sector stood at Rs 121,527 crore (US$ 17.39 billion) in FY 19-20 (till September2019). Strong policy support from the Government has been crucial to the sector’s development. Foreign Direct Investment (FDI) cap in the telecom sector has been increased to 100 per cent from 74 per cent. FDI inflow into the telecom sector during April 2000-December 2019 totalled US$ 37.11 billion.

The Government of India, through its National Digital Communications Policy, foresee investment worth US$ 100 billion in the telecommunications sector by 2022.

India ranks as the world’s second largest market in terms of total internet users. The number of internet subscribers in the country increased at a CAGR of 45.74 per cent during FY 06-FY19 to reach 636.73 million in 2018- 19. The internet subscribers reached 687.62 million till September 2019. Total wireless data usage in India grew 10.58 per cent year-on-year to 19,838,886 terabytes between July-September 2019.

Further, India is also the world’s second largest telecommunications market, total telephone subscriber base and tele-density reached 1,177.02 million and 87.45 per cent, respectively, as on January 2020.

Over the next five years, rise in mobile-phone penetration and decline in data costs will add 500 million new internet users in India, creating opportunities for new businesses.

Business Overview

RailTel Corporation of India Ltd is a "Mini Ratna (Category-I)" CPSU formed in the year 2000 as a 'Schedule A' CPSU, under the Ministry of Railways, in line with NTP '99. RailTel has exclusive seamless Right of Way (ROW) along 67,415 KM of Railway Track passing through 7321 stations across the country. RailTel is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network.

RailTel’s high speed OFC Backbone Network shall ultimately cover the entire railway network across the country. In high bandwidth backbone segment on a secured and distinct right of way, RailTel occupies a proud place with its unparalleled network. The network has the ability to provide the mission critical customized connectivity platform for enhanced corporate efficiency and growth. RailTel is creating Point of Presence at every Railway station enroute which are spaced at 8-10 Kms. At all the stations enroute STM-1/4 equipment offering bandwidth upto (155/622 Mbps) is deployed primarily to meet Railways requirement and serve the unserved and the underserved. The distribution layer network of STM-64/16 (10G/2.5G) spaced at 40-60 KMs is deployed to connect important towns/cities of the country. Presently this network is available at more than 600 cities in multiple rings of STM-64/16.

RailTel has PAN India Telecom Network with capability of Service delivery from 2Mbps to 100Gbps links. RailTel Network comprises of various technologies viz. Next Generation Network (NGN), Synchronous Digital Hierarchy (SDH), Packet Transport Network (PTN), Dense Wavelength Division Multiplexing (DWDM), Internet Protocol- Multi Protocol Label Switching (IP-MPLS) which are maintained by round the clock Network Operation Centres and trained field manpower. Total 5500+ Backbone & Access PoPs are available. All the equipments provided on the network are of State-ofthe-Art Technology and are as per International Telecom Standards. The network is spread along the length and breadth of the country covering all the important and major cities including small towns. With the spread and reach, RailTel is in a position to serve 70% of the country’s population. With its collaborative RailWire retail broadband platform, RailTel is present on fiber in 1409 Govt schools in Kerala and offering reliable broadband services to a no of retail and enterprise customers across the country. The access network of RailTel in cities and towns spans to another 5805 kms and helps deliver high speed reliable connectivity to close to 728 institutes of higher learning like IITs, IIMs, IISC, SAC, Agricultural and research institutes and universities across the country.

RailTel’s OFC based network is designed in defined hierarchical form with Core, distribution and edge layer. RailTel’s OFC based communication system comprises of various technologies and is capable of delivering telecom services to it’s customer with high SLA (Service Level Agreement)

With the presence of high speed, resilient and state of the art telecom network, backed with exclusive Right of way (RoW), RailTel is capable of delivering high SLA services to its esteemed customers. RailTel is a continuously growing company, technically and financially, to meet all the present and future Telecom and IT requirements of Indian Railways as well as of all government and private sectors. The company take pride in sharing that RailTel remains the ONLY consistently profitable, consistently dividend paying and Debt free company in Telecom space under the Govt of India.

Network Strength

RailTel has exclusive seamless Right of Way (ROW) along 67,415 KM of Railway Track passing through 7321 stations across the country. Using this ROW, RailTel has so far laid 56692 RKMs of OFC and OFC lit is 53944 RKMs till March 31, 2020. Works on another > 4000 KMs are in various stage of execution. RailTel’s high speed OFC Backbone Network shall ultimately cover the entire railway route across the country. In high bandwidth backbone segment, RailTel ocupies a proud place with its unparalled network. The network has the ability to provide the mission critical customized connectivity platform for enhanced corporate efficiency and growth.

New Initiatives

RailTel since its formation has kept pace with the introduction of new services and technology to keep its relevance in the market. The new service portfolios shall in long run help in increasing revenues as well as fully supplementing the existing services to its customers. During the year also RailTel has initiated some new services as detailed in the following paragraphs:

Railway Station Wi-Fi Services

RailTel is transforming Railway stations into Digital hub by providing public Wi-Fi at all Railway Stations. As on March-2020 5655 stations were live with RailTel’s RailWire Wi-Fi with 1.59 Crore unique users per month. This is one of the largest and fastest public Wi-Fi networks of the world. The response to the service has been phenomenal, with around 2.22 crore user login in a month and around 9000 TB of aggregated data consumption. Passengers use this facility for streaming High Definition (HD) Videos, download of movies, songs, games, and do their office work online.

Video Surveillance System (VSS)

RailTel is also executing provision of IP camera-based Video Surveillance System at 6124 railway stations and 7020 premium train coaches and EMU coaches. This will go a long way in enhancing the safety and security of the passengers travelling over the IR network. RailTel is also integrating the various standalone video surveillance system installed at various stations by respective zonal railways so that the video recordings can be seen and monitored at the Divisional and Zonal head quarter level centrally. Under the project, all cameras to be provided in station premises will be networked on optical fiber cable and brought to a centralized place (CCTV control room) from where they shall be viewed on multiple LCD monitors by Railways security personnel. The system shall provide high capacity storage devices at stations to store recording of CCTV footage for a defined period. CCTV cameras have already been provided at 225 stations.

E-office in Indian Railways

The project aims to usher in more efficient, effective and transparent inter-government and intragovernment transactions and processes. Currently, e-Office has been implemented in all 106 Units of Indian Railways against the sanctioned work of Phase-I and Phase-II. Under Phase-I Project of e-Office, 60 Railway Units consist of all Zonal Railway along with one division (including entire SCR), PUs, RDSO, NAIR, CTIs & Metro Kolkata  and under PhaseII Project, balance 46 Divisions have been covered. As one date, more than 1 lakh users of Indian Railways are using e-Office Application. After implementation of e-Office in 60 Workshops which has been sanctioned by Railway Board, entire Indian Railways will be in e-Office Platform.

During the COVID crisis 25 new establishments were commissioned with NIC e-office. This has proven to be boon in a crisis time and part of Railway workforce was able to WORK FROM HOME, which would have been impossible in case of manual filing system. RailTel has also created Virtual Private Network for 10,000 users of Indian Railways.

CoD (Content on Demand)

RailTel will be providing the Content on Demand service to passengers in trains by preloading multilingual content (Movies, Music Videos, General Entertainment, Lifestyle etc) on media servers installed in trains. With COD, passengers will be able to enjoy uninterrupted free/ Subscription based high Quality buffer free entertainment streaming service on their personal devices during their train journey despite unstable mobile network in a moving train. The content will be periodically refreshed. CoD platform will also provide e-commerce/m-commerce services in various domains e.g. travel bookings (cab, bus, train) etc. and provide various innovative solutions in digital marketing domain.

The Content on Demand service will not only improve overall passenger experience but at the same time will increase the non-fare revenue through multiple monetization models.

The digital entertainment service provider has been finalised and work has been initiated. Service to be provided on 8731 trains including 5728 Suburban Trains for which Roll out will be done over a period of 2 years.

Railway Display Network

The display screens will be provided at the station buildings, entrance, concourse, platforms, waiting rooms and foot-over-bridges but excludes circulating areas. Various passenger related information from most appropriate sources like train charting server, NTES, PRS etc shall be provided. The Railway display network with the cloud analytics will provide the ability to generate rich analytics and context to provide Railway users accurate and relevant information to improve the Railway travel experience. RDN will also be a platform for targeted live messaging on audio, video or social media to display information of national importance and citizen services. The analytics and ad exchange provides a transparent way to unlock the true advertising potential of the footfalls in the Railways.

Project is to be implemented at 2000 stations (all A1,A,B,C & D category stations). Tender have already been invited

Hospital Management Information System (HMIS)

RailTel has been entrusted with the work of Hospital Management Information System over Northern Railway Central Hospital and Delhi Division hospitals. This is integrated clinical information system for improved hospital administration and patient health care for providing an accurate, electronically stored medical records.

Proof of Concept for HMIS implementation over SCR has already been completed successfully.

Modern Train Control System

RailTel Enterprises Limited (REL), a wholly owned subsidiary company of RailTel Corporation of India ltd., has been entrusted with the work of Modern Train Control system project for modernizing railway signaling system in 4 railway sections. The Modern Train Control system project is one of the most ambitious modernization projects of Indian Railways which envisages upgradation of signalling system at par with the world class standard.

The Modern Train control system will be implemented for 165 Route KM (RKM) on Chennai Central- Mumbai section for South Central Railway, 145 RKM on HowrahChennai Central section for East Coast Railway, 155 RKM on New Delhi- Chennai central Section for North central Railway and 175 RKM on Mumbai- Howrah section for Central Railway. These are some of the busiest railway route with heavy traffic. MTCS will help enhance safety drastically reduce congestion in rail network and increase line capacity, improving punctuality as it can eliminate train delays due to automated signaling and real time information of train movements, eliminating the need for manual data logging. It will also help to increase average speed of trains due to automation of train operations. Tender have already been invited and are under final stages of evaluation

Modernization of Signaling System

RailTel Enterprises ltd, a wholly owned subsidiary of RailTel Corporation of India Ltd., has been awarded the work of replacement of old mechanical signalling equipment with state-of the-art electronic interlocking system at 13 stations of Northern Railway. The existing mechanical signalling systems are using lever frames to both lower the signal and change the tracks. The new Electronic Interlocking signalling system will now enable lowering the signal and changing of tracks by click of a mouse and will enhance safety and improve efficiency of train operation. There are total 13 stations which have been assigned to REL, out of which 3 are in Delhi Division and 10 are in Ambala Division. Work has already been started on provision of Electronic Interlocking.

State Wide Area Network

RailTel is also helping create and maintain the State Wide Area Networks (SWAN) in various states of the country. In Haryana RailTel is maintaining the complete SWAN IT infrastructure and upgrading the same where ever required and in Rajasthan radio frequency connectivity and provision of Wi-Fi upto village level is being carried out. In Kerala RailTel is upgrading the State Wide Network with new generation equipment’s and providing Facility Management Services.


Existing Services

While the new areas of business open additional avenues for RailTel, RailTel continues its focus on the present services being offered.

NLD Services

Continuing the efforts in NLD segment, RailTel has pursued its high capacity services from Lease Line growth especially with Government departments, Enterprises, Banks, etc. Last year also saw positive traction in leasing of circuits by MNCs, Govt. customers, Telecom operators and MSOs. Selection of RailTel as one of the major partners in National Knowledge Network (NKN) has contributed significantly in revenues from NLD services as demand for higher capacities is expected in this network. RailTel has managed to generate ₹ 415 Cr. revenue from this segment.

IP-1 Services

Tower colocation business translates to a good alternative for RailTel to monetize its towers infrastructure. Dark fiber leasing is a strategic customer engagement product for RailTel. The sector needs renewed focus as it is the highest bottom line business with added advantage of extensive last mile access as a reciprocal arrangement. RailTel is also refocusing on managed services in partnership with a leading infrastructure provider who shall be responsible for management and marketing of RailTel towers to various customers. This shall help in further consolidating its market with existing customer arrangements with all mobile operators across India to lease these sites for colocation purposes. Till Mar’20, RailTel has managed to generate ₹163 Cr. revenue from this segment.

ISP Services

RailTel is also providing Nationwide Internet & Broadband services to all major customer segments like ISPs, Educational Institutions and various Government departments. During the year RailTel has bagged several orders from various Government departments, PSUs and educational institutes. RailWire broadband services have registered 3572 new subscribers each month, with 1,30,104 active subscriber base on Mar’ 20. Around 3361 Local Cable Operators have partnered to provide last mile connectivity to end consumers. Total revenue of ₹ 166 crores (including RailWire accruals) was achieved during the year.

Service to Railways

RailTel was established with the vision to modernize Railways train control, operations and safety system networks. Over the years, RailTel has implemented various telecom & IT infrastructure projects as well as various Value Added Services for Indian Railways. This facilitated in spreading various Railways applications to remote and rural stations thus increasing customer satisfaction.

Data Center

RailTel has two UPTIME (USA) certified Tier-III Data Centers in place at Secunderabad and Gurugram.

RailTel offers a host of Data Centre services like Colocation Services, Managed services, Cloud Computing, Managed e-Office, Aadhaar Authentication Services, Dedicated Solutions etc, from these two state-of-the-Art Data Centres with combined total gross capacity of more than 6000 Sq.ft Server Farm area. RailTel has started Security Operations Centre (SOC)  for monitoring, analyzing and protecting Data centre services from cyber-attacks. The Data Centre and SOC support services are available 24* 7.

RailTel cloud services are backed by SLA of 99.95% and colocation services by SLA’s of 99.983% which is one of the best by industry standard. The USP of RailTel Data centre is round the clock multi-layered Physical security at different levels, Very Early Smoke Detection System, IP CCTV System, Access Control System, Water Leak Detection System, Rodent Repellent System, and Building Management System. The on-site power system with redundant diesel generators feeding a N+N redundant UPS grid to offer the highest levels of power reliability. Besides Indian Railway, a number of Government customers trust RailTel for the Data Centre services. Data Centers Being registered with MeitY for providing cloud services to Govt. Departments & PSUs

Telepresence as a Service (TPaaS)

RailTel’s TPaaS an end-to-end, high-definition videoconferencing service that gives users a virtual, face-to-face meeting experience was launched in January-2015. Before adoption of TPaaS Indian Railways were spending huge amount of money and man hours for meetings and events. Post adoption of TPaaS the number of travels for meetings and events has dropped drastically saving manhour, travel and lodging expenses. Extensively used for inauguration of Rly facilities (131 events in last 1 year).

Being swifter, faster in decision making and crisis handling, lesser travel for meetings and events has also helped in saving significant amount of carbon footprints. The service now serves 530 elite users across 45 plus customers. The success is a result of the significant ease of use & 24X7 customer responsiveness of the RailTel team vis-a-vis the challenges faced with other service providers.

SI Project Business

Continuing the efforts in Service Integrator business, RailTel has focused on SI Business during the year & various high volume orders for various government agencies are in pipeline.

Total revenue from the SI project business segment reached at around ₹ 330 Cr. ending Mar’20 as against ₹280 Cr. in Mar’19.

Blueprint for the Future

Considering the dynamic nature of Telecom & IT industry in the shadow of COVID-19, it is always pertinent to closely look into the future & work out the strategy for the company. With this aim, RailTel keeps revisiting its policies, new areas of business and new customers areas. It is pertinent to have more services under RailTel’s portfolio to cover entire gamut of Enterprise services which shall provide further growth trajectory for RailTel. RailTel now needs to focus in developing extended capabilities in the area of e-office, CoD, RDN, VSS , Data Center centric services such as managed services & cloud, LTE (Long Term Evolution), IOT (Internet of Things) Platform and Analytics, TCAS (Traffic Collision Avoidance System), MTCS (Modern Train Control System), project execution, etc. In some areas these can be developed effectively using partnership models ensuring risk mitigation while delivering such services. In order to realize the vision of being the preferred telecom solutions and service provider for knowledge economy, RailTel would be following a three-pronged strategy of concentrating on optimizing the products & services bouquet, expanding the network and upgrading to a high capacity network, and modifying the organization design.


Financial Highlights

During the financial year 2019-20, the company has achieved total consolidated turnover of ₹ 1166 crore. The Company has observed an increase of 9.63 % in its revenue from operations which comes out to be ₹ 1081 Crore. On standalone basis for yar 2019-20  total revenue earned by RailTel is ₹ 1112 crore. Profit after Tax earned has been ₹ 138 crore and Profit before tax has been ₹ 181 crore. From NLD (Bandwidth & VPN) services, RailTel earned ₹ 415 Crore during the year. While earning from IP-1 services has been ₹ 163 Crores which includes revenues from tower & rack Colocation and Dark fiber leasing. While under ISP license (Internet & Broadband) RailTel has achieved revenues of ₹ 166 Crores.

Financial performance (in INR crore)31-Mar-2031-Mar-1931-Mar-18
Profit After Tax141.1135.4134
Net margin (%)12.11313.1
Earnings per share (Rs)
Net asset value per Equity Share (Rs)42.6740.1738.3


The Initial Public Offer (IPO)

RailTel Corporation of India to open IPO on February 16: Know important details here 3

RailTel Corporation of India is all set to launch its maiden public offer for subscription on February 16. The objective behind the initial public offer (IPO) is to use the net proceeds for carrying out the disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. The offering will be of 87,153,369 equity shares which will be aggregating up to Rs 819.24 crores. However, out of the equity shares in offer, 5 lakh may be reserved for the company's employees.

RailTel Corporation IPO will be the sixth public offering of the year 2021. The previous IPO's include Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.

Here are the details one needs to know before biding into the IPO:

Date of the IPO: The IPO will be for three days starting from February 16 to February 18.

Price band: The price band has been fixed at Rs 93-94 per share for the public issue.

IPO lot size: The market lot size of the RailTel IPO is of 155 shares and a retail-individual investor can apply for up to 13 lots.

Lead managers: The lead managers of IPO include ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets Limited.

Registrar: The registrar of the IPO is KFintech Private Limited.

How to apply: Investors who are willing to invest in the IPO can apply for the same online using either UPI or ASBA as payment method. ASBA IPO application will be available in the net banking of your bank account whereas UPI IPO application will be offered by brokers who don't offer banking services.


RailTel Corporation of India shares made a strong debut on February 26 - the day when benchmark indices crashed around 4 percent each. The stock jumped 29.15 percent to close at Rs 121.40 on the BSE after hitting an intraday high of Rs 125.50, whereas the S&P BSE Sensex itself tumbled 1,939 points on Friday, the biggest single-day fall since May 4, 2020.4

The upside from its opening price of Rs 104.60, which was also its day's low, was 16.06 percent.

On the National Stock Exchange (NSE), the stock closed with gains of 29.10 percent at Rs 121.35 after hitting an intraday high of Rs 127.85 and opening at Rs 109.

It traded with volumes of more than 12.81 crore shares on the NSE and 1.59 crore shares on the BSE.

"Currently, stock is trading at 26 PE on FY20 trailing basis. The company has a diversified portfolio of services and solutions. It is a key partner to the Indian Railways in digital transformation. We are positive on the long-term prospects of the company, so we advise long term investors to hold the stock," Keshav Lahoti, Associate Equity Analyst at Angel Broking told Moneycontrol.

State-owned RailTel Corporation of India mopped up around Rs 819 crore through public issue. It was a complete offer for sale by the government.

RailTel is information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. It provides a variety of services to the Indian Railways and has implemented MPLS data network for integrated payroll and accounting system, unreserved ticketing system, freight operations information system and coaching operations information systems.

It is also working with the Indian Railways to transform railway stations into digital hubs by providing public Wi-Fi at railway stations across India.


  1. ^ https://www.railtelindia.com/profile/about-us.html
  2. ^ https://www.railtelindia.com/images/pdf/Annual%20Reports/Railtel%20Annual%20Report%202020%20Eng.pdf
  3. ^ https://www.msn.com/en-in/money/news/railtel-corporation-of-india-to-open-ipo-on-february-16-know-important-details-here/ar-BB1dAw5t
  4. ^ https://www.moneycontrol.com/news/business/economy/insurance-policy-request-or-claim-rejected-blame-the-bot-6580941.html
Created by Asif Farooqui on 2021/02/08 06:31
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