Internet Providers and Cable Companies

Introduction to the South Dakota PUC and Telecommunications Oversight

The South Dakota Public Utilities Commission (PUC) is a three-member elected body responsible for regulating investor-owned utilities in the state, including electric, natural gas, and telecommunications services. Established under South Dakota law, the PUC ensures safe, reliable, and affordable services while promoting competition and consumer protection. In the realm of telecommunications, the PUC's authority primarily covers traditional telephone services, but it extends to aspects of internet and broadband providers through certification processes and federal program administration. However, the PUC does not directly regulate pure internet service providers (ISPs) or cable companies in the same manner as energy utilities, as much of this falls under federal jurisdiction by the Federal Communications Commission (FCC). Cable TV regulation is largely handled at the municipal level through local franchise agreements. This article explores the PUC's specific responsibilities, drawing from state laws, administrative rules, and recent initiatives.

PUC Regulation of Telecommunications Carriers, Including Internet Providers

Under South Dakota law, the PUC regulates telecommunications companies, defined broadly to include entities providing voice communication services, such as local exchange carriers, competitive providers, wireless, and Voice over Internet Protocol (VoIP) services. Many of these carriers also offer broadband internet, making the PUC indirectly involved in internet access through oversight of these bundled services. Key responsibilities include:

• Certification and Registration: Telecommunications companies must register with the PUC to operate in South Dakota. This includes incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs), wireless providers, and interexchange carriers. As of recent data, there are 86 CLECs listed. The PUC designates Eligible Telecommunications Carriers (ETCs) eligible for federal Universal Service Fund (USF) support, which funds broadband deployment in rural areas. For example, ETCs must meet service quality standards and commit to providing broadband at specified speeds.

• Tariffs and Rates: The PUC reviews and approves tariffs for switched access services (fees carriers pay each other for call termination) and ensures competitive pricing for traditional phone services. However, broadband internet rates are not regulated by the PUC, as the FCC classifies broadband as an information service rather than a utility. This deregulation promotes market competition but limits state oversight on pricing or net neutrality.

• Service Standards and Inspections: South Dakota administrative rules outline service standards for telecommunications companies, including outage reporting, customer notification, and quality metrics. The PUC monitors compliance, particularly for services affecting public safety, such as 911 systems. For broadband, the PUC maintains coverage maps and tracks deployment progress.

• Consumer Complaints and Assistance: The PUC handles consumer inquiries and complaints related to telecommunications services, including billing disputes, service quality issues, and unauthorized changes (slamming/cramming). Staff mediate resolutions between consumers and providers, though for pure internet issues, consumers may be directed to the FCC. The PUC also administers programs like the Gross Receipts Tax and provides forms for new wireless and VoIP providers.

The PUC's role emphasizes promoting universal access, especially in rural South Dakota, where telecom companies have expanded broadband significantly.

PUC Involvement in Broadband Deployment and Funding

Broadband internet has been a priority in South Dakota, with the PUC playing a supportive role in deployment rather than direct regulation. The state has connected public schools to broadband since 1996 and has seen coverage rise from 58% to 94% of census blocks in recent years. Key PUC responsibilities include:

• Administering Federal Funds: The PUC reviews applications for federal subsidies like the Rural Digital Opportunity Fund (RDOF) and makes decisions on provider eligibility. For instance, in 2022, the PUC denied LTD Broadband's ETC application due to concerns over its ability to deliver services.

• State Broadband Initiatives: While the Governor's Office of Economic Development (GOED) leads programs like ConnectSD, which has invested over $221 million in broadband expansion, the PUC collaborates on mapping and oversight. The state's Broadband Equity, Access, and Deployment (BEAD) Five-Year Action Plan, released in 2023, outlines strategies for using federal Infrastructure Investment and Jobs Act funds, with the PUC involved in carrier designations. As of 2025, ongoing BEAD implementations focus on unserved and underserved areas, particularly in the Black Hills and southeast regions.

• Wireless and Emerging Technologies: The PUC assists with wireless provider issues, including spectrum allocation challenges, though primary regulation is federal. It also addresses pole attachments, which affect broadband infrastructure.

These efforts underscore the PUC's focus on bridging the digital divide through partnerships with providers.

Limited PUC Role in Cable Companies

Unlike telecommunications, cable TV services are not under the PUC's direct regulatory authority. South Dakota law grants municipalities the power to franchise cable operators, requiring them to provide service along public rights-of-way and pay franchise fees. Cable companies must negotiate agreements with cities for construction, operation, and maintenance of systems. The PUC may indirectly touch cable through complaints if services are bundled with regulated telecom, but core oversight—such as rates, programming, and franchises—is handled locally or by the FCC. For example, consumer contacts for cable issues might reference the PUC, but resolutions often redirect to municipal authorities.

Recent Developments and Future Outlook

In 2024, PUC highlights included discussions on broadband funding and deployment, reflecting ongoing investments amid federal programs like BEAD. The state has awarded grants for projects in underserved areas, with over 27,500 citizens connected through ConnectSD. As of October 2025, South Dakota continues to prioritize equitable access, with the PUC emphasizing ETC compliance and complaint resolution to support digital literacy and economic growth. Challenges, such as provider vetting (e.g., the LTD Broadband denial), highlight the PUC's commitment to accountability.

For cable, municipal franchises remain the norm, with no significant state-level changes shifting authority to the PUC.

Conclusion

The South Dakota PUC plays a vital role in fostering reliable telecommunications, indirectly supporting internet providers through certification, funding oversight, and consumer protection. However, its authority over pure broadband and cable services is limited by federal preemption and local governance. This framework balances innovation with accessibility, particularly in rural areas. For specific concerns, consumers should contact the PUC at 1-800-332-1782 or visit puc.sd.gov, while staying informed on evolving broadband initiatives through GOED resources. Laws and programs may update with legislative sessions, so consulting official sources is recommended.