Benefit marginal, failure rate inherently high, customer service horrible, poor quality in some bundled hardware
Written: Feb 11 '06 (Updated Nov 23 '09)

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| Full Review |
[Updated - cancellation after 2 years, router burnt after 3]
Not an online store like Amazon that offers products off a Web site, not an online auction like eBay that offers a method for users to exchange goods off a Web site, Vonage is a voice communications service, much like your home telephone. But instead of wiring into your home with copper like your local phone company, Vonage operate this service "online", i.e., via the Internet. (Because of this, you need additional third-party equipment and services to make it work. See "Setup". Also because of this, you are exposed to additional risks and perils. See "Risks" and "Voice quality".) Vonage's Web site plays a minimal role in its service. Contrary to some mass media that describe it as "Web-based telephone", you do not even have to go the Web to get this service. In this review, I'll describe how this online voice service work, and why, in my opinion, it is not worth your dollar. It has nothing to do with the type of broadband service you use (I use Comcast cable). A significant portion of Vonage customers is small business. With its "People do stupid things" TV commercial and unevadable Web campaign, Vonage hopes to win residential users. I shall review this service from a residential (home) user's perspective. >> Table of Contents << 1. Features * CLASS features * Call management features * Online features * Fee-based features 2. The setup * What do you need? * How to connect? * How to sign up? * How to cancel? * How to use your Vonage phone? * What is a "Vonage phone"? * When to use "Vonage phone"? * Cable trouble 3. Voice quality 4. Risks * Inherent failure rate * Is E911 "enhanced"? * Investment risk 5. Plan economy * Savings or none? * Unlimited or 500? 6. Hidden costs 7. Customer care 8. Conclusions . Ease of use . Features . Economy . Quality . Risks . The cord . Customer service . To Vonage, or not to Vonage? >> Contents << 1. Features For $25/month, you can have unlimited calling throughout U.S. and Canada. Sounds like a savings plan? Read "Plan Economy". Vonage also bundles a lot more features than your standard phone company does. Enticed? Read along. CLASS features Features such as caller ID and call waiting are known as Custom Local Area Signaling Services (CLASS) in traditional telephony. I personally don't find much use in them. I am never a sucker of phone company's voice mail, for fee or not - my $10 answering machine serves me just fine. Fancy features such as 3-way call and call return really doesn't mean much to me. Call forwarding sounds more useful. But if you are not single, do you really want to forward calls to your "home phone number" to your desk or your cell phone? Most people wouldn't care about CLASS features unless purchased in a bundle. Now, if you do purchase in a bundle from your local phone company, all these features added up cost you less than one Vonage line. Call management features Not commonly offered by local phone companies, caller ID block could be potentially useful. But I've seen handsets with this feature - again, I'm not a sucker of centralized features like this. Call hunt is just a variation of call forwarding; it rings more than one non-Vonage lines. If you use Vonage as your main home phone, then this can be quite interesting - for one person in your household. Ring list is purely a business application, used only when you have multiple Vonage lines. Online features "Click-2-Call" is an MS Windows application that grabs any phone number that appears on your Windows computer screen so you can dial that number without hitting (and mis-hitting) your phone set's keypad. This could be of considerable use for heavy business users, but of little value for me. Now, "Take Vonage with You" can be a real advantage - for all VoIP providers, not just Vonage. You can bring the Vonage device called ATA (c.f. "What do you need" in "Setup" below) with you when you travel. Wherever you find a broadband connection, your home phone goes with you. Theoretically. In reality, the most promoted Vonage ATA also doubles as a home broadband router. Now that the router links up my home, how am I going to "take Vonage with" me, without taking the entire home with me? (Sarcastically, the device's power supply is 110V only, so there's even less chance you can take it "with you".) Theoretically, I can buy another (cheaper) adapter to take with me. It is not obvious if Vonage support this, because this portable device needs to be registered ("activated" - I'll get to this later) without opening yet another line. Vonage Web page doesn't show support for this feature. I have not bothered to ask Vonage reps for all the reasons listed blow. So just forget about this feature. Fee-based features Features you can get for additional fees include - your own 1-800 number: when kids go to college, maybe? - additional virtual phone number: your local phone company probably sells this under a different name such as "distinctive ring", but with Vonage you can chose any area code. A second local number is a CLASS feature that sells for $2.99 a month by your local phone company, Vonage's virtual phone number "can be as inexpensive as $4.99 per month". I don't know its high limit. Nor do I know if the second number has a "distinctive ring" - I doubt it because this is is no longer a CLASS feature with VoIP; all depend on the device you use. No device I know implement different rings for different incoming numbers. - softphone: a Skype-like software that runs on your MS Windows computer, so you can make and receive calls from your computer. Can be convenient when you are in office or on the road. But I can't understand why they have to charge for use of softphone if I'm a subscriber. Vonage's overseas long distance rate is not competitive to my needs. 2. The setup What do you need? + A Vonage enabled device like the Linksys WRTP54G I bought. In addition to being a router, it has an analogue telephone adaptor (analog telephone adapter if you prefer, or ATA) built in. You can buy another ATA using SIP (session initiation protocol) but I heard that Vonage would only work with a select few brands and models. The ATA has an Ethernet jack to connect to the Internet. If your model is also a router, chances are it has several Ethernet jacks, so make sure you know which one connects to the Internet. The ATA has one or more phone jacks. - There are three ways you can purchase this device: by calling Vonage from your old phone, from an electronics retail store, or on Vonage's Web. Either way, you can get (close to) full rebate of your purchase price if you agree to sign up its service for a given number of months. - If using your old phone set is not what you want, you can buy a Vonage enabled VoIP phone. In today's market, such a VoIP phone cannot be used with your regular telephone line. It uses a set of Internet protocols known as SIP and RTP (realtime transport protocol). I suspect that a Vonage enable VoIP phone cannot be used with other VoIP services, just like my VoIP ATA. - Additionally, at least for this model, don't even think of using it with any other service provider. If you quit Vonage, the ATA is useless. (The router can still be used.) + A plain old telephone (POT). + A broadband Internet connection. DSL or cable, doesn't matter - to Vonage. But it perhaps matters to your wallet, because if you use DSL, you don't even have the choice of disconnecting your home phone. In its own way, Vonage and clones favour cable. Your terminal adaptor (commonly known as DSL modem or cable modem) has an Ethernet jack. + Of course, you need a power outlet. + Lastly, you'll need a computer, connected to the Internet. Almost do. Big surprise? + Optionally, you may already have your own little home router. I am replacing mine, so the following will not take this option. How to connect? + Plug the Ethernet cable into the broadband MODEM at one end, and the ATA's Internet inlet at the other. + Plug in the power. + Plug in another Ethernet cable into your computer's Ethernet jack at one end, and the ATA/router's other Ethernet jack at the other. + Plug your phone cable to the ATA's phone jack. My ATA has two, so take a guess - OK, you can do this step later, when you do know. The above reads more complicated than when you do it. But again, you don't get much help from the manuals in the retail box. You don't have to be a geek to do this. But millions of pops and moms will not do this, either. How to sign up? - Here I assume that you know how to get the router to work with your computer. If you don't care about the wireless part as I did, you should be fine just wiring them up. + Following the instructions in one of the pamphlets in the retail box, you go to www.vonage.com/activate. You'll need to find the MAC address of your ATA box. The instruction does tell you where to find it. + Then follow the Web form to type in a lot of your information, including your credit card number. One more thing, you need to select one of the rate plans: $25/month for unlimited U.S. and Canada calls, or $15/month for 500 minutes/month. + Boom! You're $30 short. And one of the LED indicators for phone jacks lights up. Now, plug your phone to the one not lit up. I'm not kidding. My ATA is that weird, and the manual says absolutely nothing about which jack to plug in. So it's not as easy as your old phone, but not too bad. If you don't like the idea of filling several pages of Web form, you can answer the same questions (including "what's your credit card number") on the phone - your old phone.
[Update] How to cancel?
Canceling Vonage is a hassle, nearly as painful (or even more so) as canceling AOL (before the court handed them the big penalty).
You'd have to call their customer service. Then, that becomes their opportunity to persuade to stay with that service. They'll throw in 1 month free the first time, two months free the second time. But my problem is, after I transferred the original phone number to another provider, the new number they assigned me for the free period wouldn't work.
I would be embarrassed to tell you how many hours I spent on the phone with Vonage customer care and technical support trying to get the new number to work, if I genuinely wanted it to work. (by then I was spending the time merely to test how bad the experience could be.) The biggest trouble? Vonage support was unable to get the correct password to reset the phone bridge in the Linksys router/bridge.
After many tries, Vonage decided to blame the router/bridge that can only be used in Vonage network. Because the warranty on the device had expired by the time I went to cancel the service, Vonage offered a $50 cash-back if I bought a new router/bridge and continue with their service.
Thank you very much but no. Then they charged me some $3. What is this fee, I asked? At first, they said it was termination fee. But this couldn't be because a) there was no documentation of a termination fee of this miniscule amount, and b) my 1-year contract obligation had expired. Then they tried to explain that even though they threw in 1 month free service (plus 2 more months free), my state's PUC charge still applied. This, too, is bogus because a) 3 months of PUC charge would be more than $3, and b) Vonage was aware of the fact that the phone number had not been functional for the entire period, so it should absorb any PUC charge for the dysfunction.
In the end, I paid the amount because it was so small. But this is hardly fair business practice. [/Update] How to use your Vonage phone? + Pick up the receiver. You should hear a dial tone similar to your local phone company's. From here on, it's pretty much like your local phone company. What is a "Vonage phone"? The phone you just plugged into this Vonage ATA is both ordinary and special. It could be that $5 phone you picked up from the drug store. It could be that fancy $400 extensible cordless phone. It's not physically different from any other phones in your home. In many ways, you can think of it as a phone connected to a new company called "Vonage". Things to remember: the "Vonage phone" has its own phone number that's different from your original home phone, and it has a different long distance rate, maybe a different local rate, too. Yes you can "port" your original phone number to this new phone, and cut your cord - figuratively and literally speaking - with Ma Bell. Local number portability (LNP) is a great idea in theory. In reality, it's a nuance to go through the paperwork to say the least. I have also read reports about more serious problems when you want to take your number back from Vonage. So think this through. Additionally, if you use DSL, you can forget about porting your phone number unless you are absolutely desperate to save long distance tolls. If you are thinking of preserving your land line as backup, it's a bigger pain to go through. When to use "Vonage phone"? As to phone rate, you need to remember which phone set(s) in your home is a toll saver in which call. If you buy into Vonage's promotion of the "unlimited" plan, and if you call mostly within U.S. and Canada, you'd like to pick up "Vonage phone" most of the time. But if you agree with my economic analysis below and want to go with the 500-minute plan, you only want to pick up "Vonage phone" when you call long distance within U.S. and Canada. Use your other phone to order pizza, for example. Therefore, I recommend that you mark your phones in your own notion if you have more than one phone users at home. Cable trouble One little detail can add quite some challenge, however, especially for apartment dwellers: cabling. If all you want is a dirt cheap phone hooked up, you may leave your phone close to the ATA/router with a standard 2 m (6 ft) cable. But if your ATA/router is not located conveniently - for example, cable broadband users usually place networking equipment close to the cable outlet, DSL users usually place networking equipment close to one wall phone jack, or if you want to use wall jackets in other rooms, your cabling options may be limited. Apartment dweller can practically forget about getting Vonage phone in other rooms - the owner usually will not allow you to modify cabling even if you pay for it. For home owners who use Cable broadband, unless you already have Ethernet cables in your wall, it could be very cumbersome to modify the cabling. For those who use DSL and own internal phone cables (not every home owner does), it is possible to modify, but you still need to plan ahead. 3. Voice quality I had heard a lot about Vonage's quality, both raves and complaints, before signing up. One person repeatedly asked people to call the Vonage number instead of old land line because the phone company "couldn't get it right." But another person gave up Vonage after a brief trial because Vongage couldn't even deliver acceptable voice for the their 1-800 support line. I have used it for less than 500 minutes so far. The voice quality from my side is not too bad. But quite a few of my callees, especially those 1-800 call centres, complained that voice was either choppy or intelligible. (I had not called many places other than call centres.) Several call centre reps told me they couldn't understand a word I said, while I heard them fine. I had to switch to my old phone to get the call through. The technology Vonage uses dictates that the best voice quality is identical to your old phone's. So my expectation is not too high. (Just think of a movie scene of a telephone dialogue where one side is represented in "real sound" and the other side in "telephone" sound effect.) However, the calls I made so far do not give me very satisfactory voice quality. I use call centres to guage voice quality because you know that they are trained to be polite and diplomatic, to cope with difficult situations. They usually receive my complaints about their phone line quality. But with my Vonage phone, I am on the receiving end of complaints from several companies. I can't hear what I sound like in the other end, but I can sense the helplessness of the agents. This is something you have to keep in mind to set your expectations low when signing up with any VoIP these days. At this time, there is little you or Vonage can do to help. In days when my Internet service provider (ISP) has a glitch in their networks, voice quality gets even worse. 4. Risks Inherent failure rate As many have pointed out, there are four major problems that can cause Vonage phone to stop working: device (ATA) failure, power failure, broadband (ISP) failure, and Vongage failure. If any of these happens, you won't be able to make a call. One thing Vonage does not want you to think about is the law of probability. The more moving parts in your car, the easier it is to break. Not many people realize that residential telephone is served by one single company, whose failure rate is generally below 0.1% (more than 99.9% reliable, or three 9's). In contrast, your "Vonage phone" is served by four different companies, none of which achieves 99% (two 9's) today. Most people have experienced broadband failures, heard about Vonage failures, and are aware of possibility of power outages. In the one month I have installed Vonage, during the dozen and half times I picked up the Vonage phone, I have had my share of ATA failure. Assume each part, the ATA, the power supply, the ISP, and Vonage, has a failure rate of 1% (which is lower than reality), the law of probability predicts your "Vonage phone" failure rate to be 4%. Alternatively, in order to achieve Ma Bell's 99.9% reliability, EACH of the four parties' reliability must reach 99.975%, or over 40 times more reliable than where they are today. Fat chance I'll live to see that day - not that I'm grey haired. Note that these numbers have little to do with Vonage as a service. Assume Vonage achieves 99.9% reliability and others remain at today's reliability, the failure rate is still 3%, or 30 times higher than that of Ma Bell. Is E911 "enhanced"? 911 access is now mandatory for Vonage, but a user can decide whether to activate. Good news is, the default sign-up process leads you through 911 activation (at no additional cost). But still, Vonage's "E911" works differently from your local phone company's 911. Vonage calls it "enhanced" 911, which is grossly misleading. On its Web site, Vonage listed many "goodies" in this "enhanced" 911, but fails to point out one thing: all those good things are already in place in your landline's 911. Interestingly, your cell phone's 911 access is also called E911 - they are very similar to Vonage's. If Vonage's E911 has any advantages, they are against cell phone E911's present implementation. Others have discussed potential disadvantages of Vonage E911. I'll not repeat here. Investment risk Lastly, the way Vonage co-market their service with equipment vendors brings a significant investment risk. If you are unhappy with Vonage but want to switch to another VoIP operator, you cannot use your Vonage ATA or VoIP phone with the new provider, even if they use the same protocols as Vonage. Linksys, for example, does not allow the end user to modify SIP settings. So my Vonage ATA won't work with any other service provider. (See "Hidden costs" below.) 5. Plan economy Savings or not? Prior to the purchase, I had determined that Vonage could not save me money. It could not save you any money, either, unless your domestic long distance bill is over $50 with a discount carrier that hooks to your local phone company - perhaps in the $200 range without. The most common rate today is 5 cents per minute. So that translates into 1,000 minutes, or 16 hours, per month. Two factors in this decision. 1) As many said, you really want a backup line. 2) Most local phone companies that can provide this backup line can also bundle unlimited domestic long distance package for $50 or so. Therefore, if I really need unlimited domestic calling, I'll spend the same $50, but without going through all the troubles and take all the risks. As to overseas calls, who needs Vonage when region specific phone cards often go 1.9 cents a minute or lower? Unlimited or 500? Although I can't save money, and don't find the bundled features useful, I decided to try out Vonage for reasons explained in "Hidden Costs". Now the question is which plan? Does "unlimited" sound appealing? For me, I didn't know how much I would use this line before I signed up. So how do I decide? The logical answer would be: sign up for unlimited ($25) for the first month, which is free, then downgrade if my usage doesn't exceed 500 minutes. Right? I called Vonage. That was exactly what the rep told me. I only used 200 some minutes during the first month. I did a bit more digging. In-network calling is always free - that's when you call another Vonage user, which for now is like once in two hundred calls. But all in-coming calls are free, like the European cell phone system. Plus, all out-going toll-free calls are free. That's a big chunk of my calls. Aside from these, every out-going call counts. If you call your next door neighbour, your free minutes go down. If you order pizza from across street, your free minutes go down. However, I do have my regular phone line - isn't it good to have the backup? So, how many long distance out-going calls for a regular household? 500 minutes is good enough. If not, every extra minute costs 3.9 cents. There are another 256 minutes before my cost goes above the $25 level. Do you spend over 12 hours a month yapping to people outside a local area? 6. Hidden costs Instead of going to Vonage's Web site or call the 1-800 number, I purchased my Vonage "box" (a wireless router/ATA) from a local retailer. Instant gratification, you know - or instant trouble? Linksys WRTP54G, an ATA combined with an 801.11g wireless router, retails for $110 - and I needed to replace my old 802.11b router - or thought so. I'll review this router itself later. Linksys rebates me $20 by mail. Then Vonage is supposed to rebate $90 after 3 months in service (i.e., after I paid for close to that amount if I stayed with their most touted plan). Vonage also promises one month of free service. Sounds like a reasonable deal if you need a new equipment AND if you find value in Vonage. I did not have this second reason. My main reason to sign up was to get a second line. But for this alone I don't have to go to Vonage. A secondary reason was to check out how good Vonage type of service was today. In the interest of full disclosure, my company has business with voice over IP (VoIP) technology (not a direct competitor). So there is a remote competitiveness. Here is the bad part. I got shocked when my credit card was $30 short after I give my number, because no material I received, retailer's ad, pamphlets in the retail box, the Web page the pamphlets point to, told me I would be charged an activation fee. Too bad I didn't check Epinions. (A sales rep later showed me a really hidden place on Vonage's home page - not the "/activate" page that the retail box indicated - where you can find this hidden fee.) Then, after I did my economic analysis, I went to downgrade. Boom! Before I could see a lower monthly fee, my credit card was short another $10. Wait! What was this? In no literature is this "new rate plan activation fee" mentioned. These days, even phone companies and cable companies don't charge you for changing service levels, as long as you stay their customer. Oh I get it. Vonage is leading the phone "revolution"! I'm a customer for only one month, and got hit by untold charges twice. Then I read the terms of service more carefully. No. None of the activation fees are mentioned. However, Item 4.6 of the retail version of terms of service (not the Web version), mentions a $40 disconnect fee. The "Terms" state that "To receive a credit for the disconnect fee, Customer must return the Device(s) ..." OK, so do I own this device after I paid the retailer? Or is this just a penalty for buying from a retailer? No, I haven't forgot about the $90 rebate Vonage is supposed to give me after three months. But for that, Vonage still doesn't own the box. Do I need a lawyer to clarify this?
[Update] Turns out I don't. When I canceled the service, they didn't ask me to return the retail equipment or charge me for it. However, they managed to slap me with yet another fee for the "free" months they threw in as bait to retain my subscription. (See "How to cancel" above.)
[/Update]
[More update] Less than year after Vonage failed to fix the Linksys ATA, the router function of Linksys WRTP54G started to act oddly. While the wireless part still worked, the wired lines dropped intermittantly, sometimes a few minutes in a row. I coped with this for a while because I couldn't locate my spare 802.11g router. I noticed that the power supply was constantly hot. I tried several other supplies I could find but none could sustain the current the router demands. It got worse and worse. One day, when I accidentally moved the power extension to which the Linksys power supply was attached, the router went dark.
So, in 3 years the wireless router, one of the main reasons why I tried out Vonage, went totally dead. I apologize for not completing the review on Linksys WRTP54G - the main motivation for wanting to review it was the poor design of the router compared with the rudimentary 802.11b router TRENDnet TEW311BRP. I didn't know that it also has poor quality. Now I am unable to finish a review. [/Update] 7. Customer care Vonage doesn't call their customer service customer service. They call it "customer care". Ha! I have a lot of experience with call centre reps. My bank. Equipment vendor. Software vendor. Phone company. Cable company. Insurance company. Lots of my calls got routed to India, to Philippines, wherever. But I have never encountered less competent reps with any other company. To give you some perspective, while I had a complain about two banks' service when they endlessly blame the other side for a mistake, 9 times out of 10, problems are solved quickly - after a long march through the menus. Most credit card companies' customer services are satisfactory to me. I once went through three Microsoft support agents in India, holding up one for over an hour, all for free. (I know what you are thinking, but there are issues that they handle for free.) Even though they did not provide a final solution, they were being very helpful, and they tried to help. I am no fan of my local phone company's customer service but I think they are quite pleasant to deal with compared with T-Mobile's. Except for sales, all my calls to Vonage was routed to India. A majority of reps I spoke to couldn't understand my English, and I couldn't understand theirs. I often had to repeat a simple question five times. Often times, they may have guessed what I literally said, but they obviously lacked customer support training. They want to follow the script given to them, and can't relate to customer's expectations. It is hard to describe the experience but the feeling is, you are spending your time to train Vonage staff. Customer? They couldn't care less. Now, the Vonage experience made me want to sing praise to T-Mobile. 8. Conclusions I'm fully aware of the many benefits of VoIP. But Vonage has made none realistic for me. . Ease of use I am fine with the setup procedures, although it is not for pops and moms. After installation, it's as easy as Ma Bell. It is important to remember which phone ("Vonage phone" or Ma Bell phone) saves money on which calls. This complicates things a bit. The most challenging will be cabling, if you really want it to work as your family phone. . Features Vonage includes many features your local phone company charge a la carte or in a bundle for free. Also included are several call management features, which is appealing mainly to business users. In a nutshell, I don't find any feature compelling enough to be considered as a reason to "switch to" Vonage. (Disclosure: I do plan to use caller ID to test my software; then I can get that for under $3/month from Ma Bell, not the $15/month I now donate to Vonage.) I travel. "Take Vonage with you" would be useful. But the way Vonage does it, this feature is not practical except for singles; not all singles, but those who don't need to access home equipment while away. . Economy Unless your current discounted domestic long distance fees are above $50 (approximately 1,000 minutes), the unlimited plan ($25/month) does not save you anything. You can realize some savings if your current domestic long distance is above $30 (approximately 600 minutes), by using the 500-minute plan ($15/month). In that case, make sure you don't misuse "Vonage phone" to call your doctor. In all cases, savings are marginal unless your current domestic long distance costs $80 (around 1,600 minutes, or 26 hours) or more. Additionally, make sure you are aware of all the hidden costs. Vonage does a good job to hide them from you before you make a decision. . Quality I accept that VoIP today has its quirks, especially in voice quality. Many people tolerate occasional voice quality problems when they use phone cards or tier 3 long distance carriers, because savings are significant. But Vonage doesn't bring significant savings over alternatives. This is probably why many people complain. . Risks Failure rate of a Vonage phone is inherently much higher than that of Ma Bell - more than 40 time higher. Vonage cannot single handedly bring this down even if it is willing to. E911 is really not "enhanced" and faces the same failure rate challenge, not including its own weaknesses. Vonage prevents vendors from releasing equipments that can be re-used with other service providers. So if you quit Vonage, you lose your investment in that equipment. . The cord You need to decide whether to cut cord with Ma Bell. My recommendation is: no. Even if you want to, it'll be extremely cumbersome if you are a DSL user. Another thing you need to decide is whether to port your home phone number to Vonage. If you are single and have a very busy social life, go for it. (But then, your friends probably already know your cell phone number.) Otherwise I can't see why this as a good move. . Service Or the lack of. Vonage provides the most horrible customer service I have experienced in the United States. It's so called "customer care" department shows no care to customer. . To Vonage, or not to Vonage? For the majority of people, the answer to this ultimate question is easy: No. Unless you have specific needs. Every Vonage user I know has very specific reasons to sign up. Some for business use. Some are heavy long-distance users. One person canceled a cell phone (because of a company policy to use a different carrier) and ported the number to Vonage, just so people can reach the old cell phone number. If you find enough reasons to try Vonage out, do so by phone or online. (Mostly you still get an ATA/router for free; if you want a wireless router, your cost is about $20 after rebate.) The retail channel seems to bear some peculiar perils.
Recommended:
No
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Epinions.com ID: valleyman
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