In a move that expands the realm of “Bidenomics,” President Joe Biden has unveiled an ambitious program aiming to provide universal internet access to every American by 2030. The initiative, backed by $42 billion in funding, marks a monumental step toward bridging the digital divide that has long plagued the nation.
During a White House briefing, President Biden emphasized that internet access is now regarded as “just as important as electricity or water.” The funds for this initiative will be channeled through the Broadband Equity Access and Deployment (BEAD) program, a pivotal component of the $1 trillion 2021 infrastructure package.
This massive investment in high-speed internet represents a historic milestone, with every state, including populous states like California and Texas, set to receive substantial funding. Moreover, states with vast rural areas lacking connectivity, such as Virginia, Alabama, and Louisiana, will also benefit significantly from this initiative.
As this transformative endeavor takes shape, it’s worth exploring how this push for universal internet access could impact the fortunes of top stocks poised for growth:
1. Comcast (NASDAQ: CMCSA):
Comcast, already the largest cable broadband provider in the U.S., is well-positioned to benefit from this initiative.
The company has thrived under the 2021 Affordable Connectivity Program, with its Xfinity cable and internet service leading the way.
Comcast stock has surged approximately 27% year-to-date, reflecting its strong potential in this evolving landscape.
2. AT&T (NYSE: T):
AT&T boasts the nation’s largest network of fiber-optic cables, a critical asset in expanding internet access.
Government subsidies could alleviate the costs of maintaining and expanding this extensive network.
Despite a year-to-date decline of approximately 20%, AT&T’s role in bolstering internet access positions it as a contrarian investment worth considering.
3. Charter Communications (NASDAQ: CHTR):
Charter Communications, the second-largest wired internet provider in the U.S. with nearly 29 million customers, is poised for growth.
The company has already benefited from government-backed programs, and it’s investing over $5.5 billion to enhance network speeds.
Charter’s strategic plans aim to provide up to 5 gigabits per second service to over 85% of its footprint by 2025.
Charter stock has surged nearly 28% year-to-date, reflecting its promising outlook in the broadband industry.
The impact of universal internet access on these top stocks is a compelling narrative in the ever-evolving landscape of technology and connectivity. As we witness the digital transformation of America, these investments are poised to play a pivotal role in shaping the future of internet accessibility. Stay tuned for updates on this transformative journey.