Hughes Network Systems has installed more than 2,000 HNS very small aperture terminals (VSATs) at CVS, one of the largest drugstore chains in the United States. Installation of these VSATs took less than three months and brings the total number of CVS drugstores and pharmacies using HNS VSATs to 3,900. The expansion represents a multiyear contract with Lockheed Martin, the owner and operator of the hub that serves CVS.
“In May 1997, CVS closed a deal to purchase 2,400 Revco stores and it was
imperative that we got these operational as soon as possible,” said Ted Odom, telecommunications manager at Lockheed Martin. “We looked at several options for CVS including frame relay and other high-speed terrestrial alternatives, but the important factors for our customer were cost, ease of use, reliability, and rapid deployment of the network. HNS was able to beat out the competition in all of these areas.”
In its analysis of the criteria that CVS identified as critical, Lockheed
Martin reviewed competing technologies and recognized that there were distinct advantages to choosing a VSAT network. Cost issues were a factor and the fixed-pricing aspect of satellite-based networks ensures that Lockheed can budget realistic numbers without being subjected to usage and carrier-sensitive pricing and tariff fluctuations. In addition, the operating overhead for satellite networks are traditionally lower than terrestrial solutions because most maintenance and management needs can be dealt with by an operator at the hub rather than in geographically dispersed areas with more than one service vendor.
“VSAT satisfies all our business needs at a much lower operating cost and
could be guaranteed to install and roll out by our aggressive timetable,”
attested Odom, explaining why CVS chose VSAT over terrestrial means. Odom
said it was doubtful another system could be installed and operational for
2400 sites in the three-month time period from signing to rollout. Revco’s
former system was handled over leased lines. Odom continued, “In addition,
VSATs are simpler because we can maintain and service them in one location and we do not have to coordinate with hundreds of phone companies across the
nation.”
CVS uses its VSAT network for all standard point-of-sale retail and
pharmacy applications including credit-card and check authorization,
adjudication and authorization of prescription benefits, and file transfers.
In addition, it will transmit in-store music to all 3,900 store locations from
one central location. Ongoing operation and maintenance of the network is
being provided by Lockheed Martin and its subcontractor WANG.
CVS Corporation which operates in 24 states and the District of Columbia, is the leading drugstore chain in the Northeast, Mid-Atlantic, Southeast and Midwest, with 1997 net revenues of $12.7 billion. CVS completed its merger with the Revco chain of drugstores in May 1997. It is headquartered in Woonsocket, Rhode Island.
A world leader in satellite products and network systems for more than 25
years, HNS has 65 percent of the global-VSAT market and has shipped more than 180,000 VSAT terminals. Headquartered in Germantown, Md., near Washington, D.C., the company has sales and support offices worldwide. HNS offers communications network solutions incorporating a complete line of integrated satellite and enterprise networking products that includes VSATs, frame relay, and fixed and mobile wireless networks. HNS is a Hughes Electronics Corporation company and an ISO-90001-certified manufacturer.
