Prior to designating an eligible telecommunications carrier, the commission shall determine that the designation is in the public interest, based upon the following considerations:

1. (1) The benefits of increased consumer choice;
2. (2) The impact of multiple designations on the universal service fund;
3. (3) The unique advantages and disadvantages of the applicant's service offering;
4. (4) Any commitments made regarding the quality of the telephone service provided by the applicant;
5. (5) The applicant's ability to provide the supported services throughout the designated service area within a reasonable time frame; and

6. (6) Whether the designation of the applicant is likely to have detrimental effects on the provisioning of universal service by the incumbent local exchange carrier.

   If an applicant seeks designation below the study area level of a rural telephone company, the commission must also conduct a creamskimming analysis that compares the population density of each wire center in which the applicant seeks designation against that of the wire centers in the study area in which the applicant does not seek designation. In its creamskimming analysis, the commission shall consider relevant factors pursuant to 47 C.F.R. § 54.315 (January 1, 2006) by the incumbent local exchange carrier. The creamskimming analysis is not required for a wireless lifeline-only eligible telecommunications applicant.

Source: 32 SDR 231, effective July 10, 2006 ; 52 SDR 32, effective September 29, 2025 .

General Authority: SDCL 49-31-3 , 49-31-76 , 49-31-77 , 49-31-81 .

Law Implemented: SDCL 49-31-3 , 49-31-76 , 49-31-78 .

Prior versions effective: 2006-07-10.