President Joe Biden has announced a new program called the Broadband Equity Access and Deployment (BEAD) Program, which aims to provide universal internet access to every person in America by 2030. The program, funded by $42 billion, is part of the Biden administration’s $1 trillion infrastructure package. Biden emphasized the importance of internet access, stating that it is “just as important as electricity or water.”
The BEAD Program will distribute funding to all 50 states, with California and Texas receiving the largest sums. States with large rural areas lacking connectivity, such as Virginia, Alabama, and Louisiana, will also receive significant funding. Biden called it the largest investment in high-speed internet ever.
As a result of this push for universal internet access, certain industries are expected to benefit. Three top stocks that could see growth in the coming years are Comcast, AT&T, and Charter Communications.
Comcast, already the largest cable broadband provider in the US with 32.3 million subscribers, is in a strong position to benefit from the program. The company has already benefited from the 2021 Affordable Connectivity Program, which provided over 19 million households with a monthly subsidy for broadband bills. Comcast stock is up about 15% year to date.
AT&T, which operates the nation’s largest network of fiber-optic cables, could also benefit from the program. The company serves millions of consumer and business addresses across the US. Government subsidies could help AT&T maintain and expand its network. AT&T stock is down about 17% year to date.
Charter Communications, the second-largest wired internet provider in America with 30.6 million customers, is well-positioned to capitalize on the BEAD program. The company has already invested billions to improve network speeds and plans to reach 85% of its footprint with high-speed service by 2025. Charter stock is up nearly 20% year to date.
These stocks present investment opportunities for those looking to benefit from the push for universal internet access. However, investors should conduct their own research and consider the risks involved.
Please note that this article provides information only and should not be construed as advice. It is provided without warranty of any kind.
