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The Biden Administration has unveiled a plan to ensure reliable broadband internet access for all Americans, including those in remote rural areas. With a federal investment of billion over the next two years, the initiative aims to bridge the ‘digital gap’ and provide equal opportunities for high-speed connectivity. This investment is expected to benefit broadband internet providers in the long term, as they will be responsible for building infrastructure, increasing capacity, and acquiring new customers.

One of the companies set to benefit from this initiative is Charter Communications (CHTR), a leading provider of internet and mobile services. Charter serves over 30 million residential and small-to-medium business customers and has nearly 500 million IP devices connected to its network. The company generated approximately billion in annual revenue last year. Despite a modest revenue increase in the most recent quarter, Charter has consistently delivered strong returns and aims to surpass its 2022 broadband additions compared to the previous year. Analysts have given Charter a Buy rating, with a potential one-year upside of 37%.

Another company to watch is AT&T (T), one of the largest telecom firms in the world. With a market capitalization of over 0 billion and 2022 revenues exceeding 0 billion, AT&T is the leading provider of mobile phone services in the US market. The company offers a range of telecommunications services, including landline and wireless communications, internet packages, and is actively involved in the rollout of 5G networks. AT&T’s recent performance has been promising, with operating income and non-GAAP EPS exceeding expectations. The company’s ability to generate cash flows and its dividend yield of 7.8% make it an attractive investment option. Despite a recent controversy regarding lead-lined cables, AT&T has the resources to handle such challenges and maintain its position in the industry.

Overall, the Biden Administration’s broadband initiative presents opportunities for investors in the broadband internet sector. Companies like Charter Communications and AT&T are well-positioned to benefit from the increased federal investment and the growing demand for internet services. Analysts have given both stocks a positive outlook, with potential gains in the year ahead.

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