Over the last few years, India has travelled the path of rapid digitalization. Not only has the current crisis failed to stop this process, on the contrary, it has served to accelerate it in many areas and make some trends more evident.
Government efforts, active work of India’s business and joint steps undertaken by India’s public bodies and private entrepreneurs who are equally cognizant of the digital transformation’s significance, difficulties and prospects for India’s economy and society as a whole have advanced the process of shaping India’s new digital realities.
In 2015, India’s Prime Minister Narendra Modi announced the launch of the Digital India campaign spanning a series of key government initiatives such as increasing the people’s digital literacy, developing infrastructure and creating an e-government. The most significant achievements include completing and putting into operation the Aadhar digital identification system; a single taxation system covering all Indian states that previously had individual taxation rules; and the Reserve Bank of India, jointly with the association of Indian banks, developing and introducing an instant payment system similar to that created by Russia’s Central bank.
Nandan Nilekani, a well-known Indian entrepreneur and public figure, leads the committee on deepening digital payments at the Reserve Bank of India. An engineer by training, together with Narayana Murthy and several other entrepreneurs, Nilekani co-founded Infosys, one of India’s most famous and successful companies working in software development and IT consulting. In 2009, Nilekani left Infosys and wrote several books about India’s development and the way he sees its future: Imagining India: The Idea of a Renewed Nation (2009); Rebooting India: Realizing a Billion Aspirations (2015). He also headed the Unique Identification Authority of India, the government body that developed Aadhar, a digital biometric identification system, and introduced it throughout the country; Aadhar has already been mentioned; its importance for India is hard to overestimate. Digitalization has already resulted in tectonic shifts within a very short time-span, no more than 5-7 years, in such areas as India’s e-payments and financial technologies, e-commerce, telemedicine and entertainment. The spread of digital technologies has great significance and potential in such areas as agriculture, education, increasing energy efficiency, regulating employment and the labour market, transportation, logistics and further development of e-government.
Yet, none of that would have been possible had government initiatives not been backed up by the ambitions and strategic approach of another Indian entrepreneur, Mukesh Ambani, who swiftly provided Indians with cheap Internet and accessible smartphones. As he advanced his digital business initiatives, Ambani called upon Narendra Modi’s government to achieve maximum localisation of Indian data in India and spoke about the need to fight a new type of colonialism, the country’s informational enslavement by global corporations, so-called data colonisation. He devoted all his resources to developing a new sovereign digital platform; back in 2016-2017, Ambani already said that data are the new oil and smart data are the new fuel of India’s economy.
Following the sectoral liberalisation at the turn of the 20th-21st century, India created a telecommunication services market characterised by high competition among players (both Indian and international companies) that came to the promising area via partnerships with national bodies holding the requisite licences. By around 2010, most companies working in India saw that their revenues coming from traditional services might potentially drop, so they planned to transition to selling data. None of the many telecommunication companies on India’s market have, however, succeeded in the attempt. The failure stems from several factors, including the policies of the regulator (which decided to change the rules of the game and check the terms and conditions of previously issued licences at a crucial time for the sector) and appearance of a new player with the requisite resources, who was willing to spend them on achieving his large-scale goals. That player was Mukesh Ambani and his company called Jio. The history of Ambani’s family business is an integral and characteristic part of India’s economy, and the development track of his companies, including Jio, is regularly discussed in business media and is the subject of several business cases in the world’s leading schools.
Dhirubhai Ambani, the father of Mukesh Ambani and Anil Ambani, launched his business empire in 1957 with a small Bombay-based company importing synthetic fibers and exporting spices. In 1977, following its successful IPO, Dhirubhai Ambani’s Reliance Group became synonymous with business success and guaranteed financial investment for many Indians. The company did not confine itself to the textile business and became a diversified holding that also worked in exploring and developing hydrocarbons, in oil processing, petrochemicals, as well as energy, finances, trade and other areas. In fewer than 30 years, Reliance Group became a fixture of Fortune Global 500 and India’s biggest private company, rivalling such famous family holdings as Tata, Birla, Godrej, Mahindra. Dhirubhai Ambani died in 2002, leaving his sons a multibillion fortune. The brothers Anil and Mukesh engaged in a series of high-profile and unrestrained quarrels that resulted in Reliance Group’s assets being split in 2006. The telecommunication company Mukesh Ambani formed in 2002 had to be transferred, among others, to Anil, but Mukesh had the powerful oil processing business left under his control. His company was now called Reliance Industries. Its assets included the famous high-tech complex in Jamnagar (Gujarat State) processing up to 1.4 million barrels of oil a day. 2010 marked an important stage in this story, when the brothers agreed on revising the terms and timeframe for the non-compete agreements, and subsequently, Mukesh had a chance to announce openly his intentions to embark on a qualitatively new approach to the telecommunication business.
It took Mukesh Ambani about six years to create a new company named Jio (Hindi for “live”). It was officially launched in September 2016. Back then, its telecommunication rivals realised that their already difficult situation would become far worse following the emergence of a powerful new player, but hardly anyone could imagine the cardinal and radical changes in store for the sector. India’s normally very active anti-monopoly agency, as well as other supervisory bodies, were prepared to close their eyes to many controversial points, since Ambani’s goals of swiftly spreading accessible Internet coincided with the course for digitalization steered by the government, while his statements that Indians’ data must be kept in India were very appealing for India’s political leadership. As of today, there are only two big players left in India’s telecommunication sector besides Jio, and these two are in a deep financial crisis. India’s government had to bail out both these companies by allowing large-scale foreign investment and by permitting all players to raise the prices for their services slightly, which had, over the last few years, fallen to an unprecedented low (between 2013 and 2017, the cost of 1 GB of data in India fell by 95%).
Today, Reliance Jio is part of the Jio Platforms holding company formed in 2019 as part of Reliance Industries. Mukesh Ambani’s two elder children hold top managerial positions in the family business. His son Akash, a graduate of Brown University, is in charge of strategy in Reliance Jio, while his daughter Isha, who graduated from Yale University, is on the board of directors in Reliance Jio and Reliance Retail.
The infrastructure and entire digital ecosystem of Reliance Jio was created and put into operation in under 2–3 years. The estimated costs of creating Reliance Jio vary between USD 20 and 45 bn., which is approximately the amount of Reliance Industries’ debt increase over the period of creating Jio. At the time of the company’s IPO in 2016, two-thirds of India’s population of over 1.3 bn. had no Internet access. The company set the goals of deploying an efficient 4G network throughout India, including its remotest areas, while securing a large tech margin for future improvements, and of providing its clients with cheap smartphones and access to various contents and services through its own apps. In the first few months of its operations, while the equipment and all systems were being checked, cheap mobile devices under Jio’s own brand were literally handed out to customers free of charge. Later, minimal tariffs were introduced that immediately made India the leader in mobile operator accessibility for both voice services (phone calls were essentially free) and high-speed data transfer. Once sales took off, the company endeavoured to achieve 100 million new clients in the first 100 days, and did not slack off later: in the first two years, Jio had 250 million subscribers, and today it has 388 million. The company plans to reach 500 million users by 2021.
Jio has a large number of apps and services that have quickly become fixtures in the lives of Indians. They include JioTV, JioCinema, JioSaavn (a music service), JioMoney, JioCloud, JioFiber (broadband Internet access service). Jio rather efficiently provided digital functions to the conglomerate’s commercial line: Reliance Retail, which is also the leader in its segment in India. JioMeet, a video call service, is the latest addition to this extensive range of services. Reliance Jio’s contribution to increasing India’s per capita GDP is estimated at 5.65% in 2018.
Internet access is, indeed, changing India’s image and lifestyle before our very eyes. Largely owing to the decisive actions of the Indian businessman Mukesh Ambani, India has, in just a few years, made a qualitative leap in many digitalization-related areas while avoiding many intermediary stages that other countries spent years on. Only Indonesia outstrips India in its digitalization pace. In 2018, only China exceeded India’s number of digital consumers (560 million users). A survey McKinsey conducted in 2019 showed that the pace of data consumption per user in India grew twice as fast as in the US and China, increasing by 152% annually. Various estimates put an Indian user’s average data consumption at up to 9.8 GB of mobile Internet a month (this indicator is 5.5 GB in China, 8–8.5 GB in South Korea, and the 2019 figure in Russia is about the same). The number of Internet users in India was expected to grow by about 40% by 2023, to 750–800 million people, and the number of smartphones is expected to double, reaching 650–700 million (as of 2018, India had 1.2 bn. mobile subscribers). We can be sufficiently confident that new conditions arising from the pandemic will speed up these trends significantly.
The development prospects of India’s digital economy and primarily its consumer segment stimulated an explosive growth of entrepreneurship that also relies on the traditionally strong stratum of Indian IT specialists. In 2017, Indian developers participated in creating over 100 000 apps for the App Store alone, while the total number of such apps is far higher, given that Indian specialists mostly create apps for Android. In the entrepreneurs’ major league, 30 Indian digital high tech companies are unicorns (their capitalisation is over USD 1 bn., and they are still owned by their founders). In 2017, there were ten such companies. The crucial thing is that would-be unicorns in India are also quite numerous: in 2019, there were over 50 potential future champions.
There have always been many difficulties in working on the Indian market. Suffice it to say that, today, the majority of new Internet users in India do not speak English and need interfaces and content in regional languages. The country has 22 such principal languages. WhatsApp, for instance, supports 11 of them. Still, international investors bank on Indian tech companies, which is greatly helped by government bodies constantly working to stimulate the sector’s investment appeal. Companies working in e-commerce, digital payment services, and tourism have long been the leaders in attracting investment among India’s tech startups. A telling recent example of the international capital race for digital India was the USA’s Walmart acquiring Flipkart, one of India’s many digital e-commerce platforms, in May 2018. Walmart had long tried to gain access to India’s offline market, all to no avail, and it finally came to India by buying 77% of Flipkart for USD 16 bn.
Several investment funds of Russian origin are among those making big investments in India. They continue actively selecting new projects for investment and for strategy adjustment, as do other investors.
Companies that appear not to have any tangible assets, not to make any money, and to accrue debt abound not only in developed countries but now in India as well and still continue to increase their investment potential, thus greatly befuddling traditionally-minded financiers. Yet, analysts increasingly have to admit that high-tech digital companies have unique sets of their clients’ big data, which allows these companies to increase their market share and make correct managerial decisions while constantly improving the functions or services they provide.
Big data is becoming more and more important for governments as well. The quality of analytical materials, development of AI technologies and efficiency of modelling processes depend directly on data volume used as learning material; it can be used, among other things, to manage processes and resources in smart homes and cities efficiently. This is the purpose of Smart Cities, one of India’s government programmes. By late 2020, Jio planned to present commercial solutions for the Internet of Things. The company’s technical capabilities make this possible. While the Indian government is only preparing to make the decision on deploying 5G, Mukesh Ambani says that he has already built a new infrastructure capable of working with 6G and he is now striving to make India one of the principal beneficiaries of the 4th industrial revolution. Jio has no rivals in India in its capacity for collecting up-to-date data of Indian consumers and it plans to improve its technologies for their most prompt and precise processing and further use, while simultaneously developing cloud computing, smart devices, blockchain, augmented reality and more.
The current crisis arising from the pandemic is both shaping new consumer habits and bolstering demand for qualitative changes in approaches to the future economic development of many countries. This is also important for Russia, where, despite all the efforts to diversify its economy, there still remains the threat linked to dependency on commodity exports and the high energy intensity of other Russian exports. And it is also important for India, where 80% of its economy depends on imports of coal, oil and gas.
It was previously announced that 20% in Reliance Industries’ petrochemical business would be sold to Saudi Aramco, Saudi Arabia’s oil giant, for USD 15 bn. With oil prices falling to record lows, however, in March the deal fell through.
Instead of the Saudi Aramco deal, Jio Platforms finalised three different sales: 9.99% was sold to Facebook for USD 5.7 bn., 2.32% of Jio Platforms is now owned by the Vista Equity Partners investment fund (the stock is worth USD 1.5 bn.), and an additional 1.15% of the company’s stock was purchased by investors at Silver Lake Partners for USD 747 m. Mukesh Ambani still holds 86.54% of the company. Other deals with other investors are likely to follow, which will allow the Indian businessman finally to pay off Reliance Industries’ debt (about USD 8 bn.) by March 2021, without losing control of Jio Platforms, just as he planned.
In their official statements concerning the deals, all the participants, including Mukesh Ambani and Mark Zuckerberg, emphasize their confidence in the promising Indian market and in Jio Platforms’ potential. In full accord with the expectations of the Indian government and regular Indian citizens, they say that the new collaboration does not entail data exchange between partner companies. Jio, Facebook, Vista and Silver Lake also say they intend to use their technologies for the benefit of India’s small and medium-sized businesses by connecting such entrepreneurs more actively to e-commerce platforms. They are talking street trade and the so-called kiranas, typical Indian “neighbourhood” grocery stores; they will be able to find a more efficient digital way to meet their customers’ demand. Facebook-owned WhatsApp, which is very popular in India, is expected to play an important role in this process. If talks with the regulator concerning granting WhatsApp payment-making functions are successful, then, by pooling efforts with JioMart, the company will be able to expand both sellers and buyers’ capabilities significantly and compete with India’s most widespread fintech service PayTM, whose investors include Alibaba Group (the Chinese company owns 40% in PayTM).
India, with its 300 million users, is Facebook’s biggest market. WhatsApp has over 400 million users in India. As for the two other investors in JioPlatforms, Vista Equity Partners is noted for its major presence in India’s tech sector: its Indian companies have over 13,000 employees, while its co-founder Brian Sheth is a native of Gujarat, like Mukesh Ambani and Narendra Modi. Like Vista, Silver Lake is based in Silicon Valley and has already invested over USD 40 bn. in tech companies such as Airbnb, Alibaba, Ant Financial owned by Alphabet Verily and Waymo, and also Dell Technologies and Twitter.
Observers with a lively imagination have long since noticed that the company’s name, Jio, is a mirror image of the word “oil.” It is not known for certain whether this is by its founder’s design, but the events of the last few months and transactions around Jio Platforms confirm that, instead of demand for oil, the world is demonstrating a growing demand for innovations. Consequently, compared to other countries, India has every chance of becoming part of the process and a big-time winner. Russia’s business cooperation with India needs, like never before, to have its current realities supplemented in new formats, be it financial technologies, information security, artificial intelligence, sustainable energy infrastructure, advanced materials or other innovative areas.
From our partner RIAC
Can big data help protect the planet?
How do we get to a more sustainable and inclusive future if we don’t know where we are? This is where data comes in and, right now, we do not have the data we need.
These were some of the questions asked at the Third Global Session of the UN Science-Policy-Business Forum held during the UN Environment Assembly. The virtual discussion delved into the role of big data and frontier tech in the transition to a sustainable future.
Opening the session, United Nations Environment Programme (UNEP) Executive Director Inger Andersen said science needed to be digitized so it could be more democratic and accessible. She said digital transformation is central to UNEP’s new Medium-Term Strategy.
“Big data and new tech can support real-time monitoring of the environment, help consumers adopt more sustainable behaviour, and create sustainable value chains,” she said. “The [UN] Secretary-General has made it very clear that digital transformation has to be part and parcel of the UN … we have oceans of data but drops of information.”
At the event, participants stressed that knowledge obtained through the latest digital technologies such as Artificial Intelligence, Machine Learning and the Internet of Things could speed up progress on environmental goals. Better data could inform interventions and investment, while boosting results and impact measurement.
Bridging the data divide
The data deficit is also hindering the world’s ability to respond to climate change.
Petteri Taalas, Secretary-General of the World Meteorological Organization, said earth observation systems and early warning services were still poor in parts of the world, with around US$ 400 million needed to improve these.
“That is one of the ways to adapt to climate change – to invest in early warning services and observation systems. We have to monitor what is happening to the climate but this monitoring is in poor shape,” he said.
Making the right technology available to developing countries not only presents a financing challenge, but also underlines the profound need for accessible, open-source technology.
Munir Akram, President of the UN Economic and Social Council, said bridging the digital divide is critical. He noted that connectivity was only around 17 per cent in the poorest countries compared to above 80 per cent in richer countries.
“We need to build a database for all the open source technologies that are available in the world and could be applied to build greener and more sustainable structures of production and consumption. These technologies are available but there is no composite database to access them,” he said.
UNEP’s digital transformation
UNEP’s commitment to harnessing technology for environmental action begins ‘at home.’ At the fourth session of the UN Environment Assembly in 2019, Member States called for a Big Data Strategy for UNEP by 2025.
The organisation is currently undertaking a digital transformation process, while also focusing on four key challenges:
- Help producers measure and disclose the environmental and climate performance of their products and supply chains;
- Help investors assess climate and environmental risks and align global capital flows to climate goals;
- Enable regulators to monitor real-time progress and risks;
- Integrate this data into the digital economy to shape incentives, feedback loops and behaviours.
- Indispensable tools
- Other cutting-edge digital transformation initiatives are also in progress. UNEP’s World Environment Situation Room, a platform put together by a consortium of Big Data partners in 2019, includes geo-referenced, remote-sensing and earth observation information and collates climate data in near real-time.
- At the event, Juliet Kabera, Director General of the Rwanda Environment Management Authority, described how her country had invested heavily in technology, including connectivity, drones and online platforms, such as the citizen e-service portal, Irembo.
- “There is no doubt that technology has a critical role in addressing the urgent challenges we all face today, regardless of where we are in the world,” Kabera said. “The COVID-19 pandemic once again reminded us that science and technology remain indispensable tools for humanity at large.”
Women and girls belong in science
Closed labs and increased care responsibilities are just a two of the challenges women in scientific fields are facing during the COVID-19 pandemic, the UN chief said in his message for the International Day of Women and Girls in Science, on Thursday.
“Advancing gender equality in science and technology is essential for building a better future”, Secretary-General António Guterres stated, “We have seen this yet again in the fight against COVID-19”.
Women, who represent 70 per cent of all healthcare workers, have been among those most affected by the pandemic and those leading the response to it. Yet, as women bear the brunt of school closures and working from home, gender inequalities have increased dramatically over the past year.
Woman’s place is in the lab
Citing the UN Educational, Scientific and Cultural Organization (UNESCO) he said that women account for only one third of the world’s researchers and hold fewer senior positions than men at top universities, which has led to “a lower publication rate, less visibility, less recognition and, critically, less funding”.
Meanwhile, artificial intelligence (AI) and machine learning replicate existing biases.
“Women and girls belong in science”, stressed the Secretary-General.
Yet stereotypes have steered them away from science-related fields.
Diversity fosters innovation
The UN chief underscored the need to recognize that “greater diversity fosters greater innovation”.
“Without more women in STEM [science, technology, engineering and mathematics], the world will continue to be designed by and for men, and the potential of girls and women will remain untapped”, he spelled out.
Their presence is also critical in achieving the Sustainable Development Goals (SDGs), to close gender pay gaps and boost women’s earnings by $299 billion over the next ten years, according to Mr. Guterres.
“STEM skills are also crucial in closing the global Internet user gap”, he said, urging everyone to “end gender discrimination, and ensure that all women and girls fulfill their potential and are an integral part in building a better world for all”.
‘A place in science’
Meanwhile, despite a shortage of skills in most of the technological fields driving the Fourth Industrial Revolution, women still account for only 28 per cent of engineering graduates and 40 per cent of graduates in computer science and informatics, according to UNESCO.
It argues the need for women to be a part of the digital economy to “prevent Industry 4.0 from perpetuating traditional gender biases”.
UNESCO chief Audrey Azoulay observed that “even today, in the 21st century, women and girls are being sidelined in science-related fields due to their gender”.
As the impact of AI on societal priorities continues to grow, the underrepresentation of women’s contribution to research and development means that their needs and perspectives are likely to be overlooked in the design of products that impact our daily lives, such as smartphone applications.
“Women need to know that they have a place in science, technology, engineering and mathematics, and that they have a right to share in scientific progress”, said Ms. Azoulay.
‘Pathway’ to equality
Commemorating the day at a dedicated event, General Assembly President Volkan Bozkir informed that he is working with a newly established Gender Advisory Board to mainstream gender throughout all of the UN’s work, including the field of science.
“We cannot allow the COVID-19 pandemic to derail our plans for equality”, he said, adding that increasing access to science, technology, engineering and mathematics education, for women and girls has emerged as “a pathway to gender equality and as a key objective of the 2030 Agenda for Sustainable Development”.
Mr. Volkan highlighted the need to accelerate efforts and invest in training for girls to “learn and excel in science”.
“From the laboratory to the boardroom, Twitter to television, we must amplify the voices of female scientists”, he stressed.
Meanwhile, UNESCO and the L’Oréal Foundation honoured five women researchers in the fields of astrophysics, mathematics, chemistry and informatics as part of the 23rd International Prize for Women in Science.
In its newly published global study on gender equality in scientific research, To be smart, the digital revolution will need to be inclusive, UNESCO shows that although the number of women in scientific research has risen to one in three, they remain a minority in mathematics, computer science, engineering and artificial intelligence.
“It is not enough to attract women to a scientific or technological discipline”, said Shamila Nair-Bedouelle, Assistant UNESCO Director-General for Natural Sciences.
“We must also know how to retain them, ensuring that their careers are not strewn with obstacles and that their achievements are recognized and supported by the international scientific community”.
Importance of information technology and digital marketing in Today’s world
In the current times, to cope up with the demands of the changing world, we need to adopt digital and modern platforms. With the world rapidly growing towards digitalization and investing in information technology, our state is also going for unconventional means for carrying out different tasks in a more appropriate and time saving manner.
Firstly, we can take an example of online shopping. Many international and local brands have their online stores. Customers can order anything from any part of the world without traveling from one place to another. This initiative has contributed towards time saving and efficient use of technology. One can get whatever they want at their doorstep without any hustle of the traffic. This initiative has boosted the business as there are walk in customers as well as online. This initiative has also attracted a large number of audience due to ease and convenience in shopping. This phenomenon comes under the digitalization process. We should not forget the significance of internet in this regard as it was the first step towards digitalization. All the communication and digital platforms we are using are accessible to us due to internet.
Another aspect of information technology is combating the communication gap between states and its masses. Today, there are many applications like WhatsApp, Skype, Facebook, messenger etc. through which one can communicate with his/her friends, relatives without being physically present there.
We have websites of different organizations as well as educational institutions through which we can get the information of that specific organization. Like, when we are registered with an organization, all our data is stored on its official page and accessible to specific persons. Same is the case with students that their educational record is held by university and when they are registered with their institutions, they can receive any updates or any new events or job opening through emails and messages.
The Covid-19 factor cannot be ignored in this regard. Due to the rise in Corona cases, jobs have been shifted from physical to online. Work-from-home is the new normal. All this is happening due to the digitalization process. It would not be wrong to say that the progress in information technology and digital platforms has made the life easier for the people.
Another prominent component is the online banking. Through this people can easily do transactions through their phones or PC’s by logging in to their bank accounts while sitting at their home and can access it any time. Bills can be paid through it. This is definitely a sigh of relief for the people who are tired of standing in the long queue outside banks to submit their bills or complexities while going to banks and doing transactions over there. This facility has also minimized the time wasted in traffic jams and standing in queue for long hours while going to banks. This time could be used for other productive tasks.
Online registration of cars in Islamabad initiated during the COVID-19 is another wonder of digitalization process. Islamabad administration has made it easier for its people to register their cars while sitting at their homes without the fear of being infected. Food delivery systems should also be appreciated for their smart work. There are apps like food panda, cheetah etc. through which people can order their desired food through a call. Many food chains offer home deliveries that has made the lives of the people much convenient.
The much-appreciated step by the government is producing Pakistan made ventilators and stents in the view of the rapidly increasing Corona cases. This was possible due to appropriate scientific and technological knowledge. The government has also said that soon we will be seeing Pakistan made chargeable vehicles on the roads. They will prove to be economical and fuel saving; they will be easy to handle and have human friendly interface.
Developments in Nadra is another milestone as now everything is computerized, there is no paperwork required and all the records are saved in computers. Recently, our interior minister has said that Nadra will now exempt the cost of making identity cards and the card will be provided to the person after 15 days as previously it to took more time to give the card to the concerned person. Removing check posts in the capital and substituting them with other efficient measures like cameras, drones is another achievement. Another recent development in the line of digitalization that cannot be ignored is inauguration of online system by the Islamabad traffic Police through which people can get their license and other paperwork can be done through the online portal.
It can be concluded that we are gradually moving from traditional ways of working towards a digitalized era. However, there is still a room for improvement, the good thing is that people are understanding the importance of the digitalization process by gradually accepting it but further awareness through innovative campaigns does not bring any bad. An interesting take pertinent to advanced digitalization and technological growth is that it had definitely made people to completely rely on digital processes and solutions that now people have to opt for these advanced strategies in any case, whether they are comfortable with or not. Obviously, good things take time and using digital resources for fruitful purposes is not a bad idea at all; unless and until resources are not wasted.
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