Reuters
4 min read
(Reuters) -The Trump Organization launched a self-branded mobile service and a $499 smartphone on Monday, dubbed Trump Mobile, signaling a new effort to court conservative consumers with a wireless service positioned as an alternative to major telecom providers.
The new mobile venture will include call centers based in the United States and phones made in America, the organization said.
The Trump family, long known for its real estate empire, luxury hotels, and golf resorts, has in recent years ventured into newer arenas including digital media and cryptocurrency.
The Trump Organization, which is the main holding entity for most of the U.S. president's business ventures, said ahead of Trump's inauguration that control of the company would be handed to his children, replicating the arrangement from his first term, though concerns about potential conflicts of interest remain.
COMMENTS:
US MEDIA, CABLE AND TELECOM EQUITY RESEARCH, BARCLAYS
"Needless to say, it is quite unprecedented for a sitting president’s name to be attached to a commercial mainstream service that is regulated. None of the telecom companies have formally announced an agreement with the Trump Organization for an MVNO agreement and therefore it is not clear which entity is providing the network.
"However, telecom is a highly regulated industry and the present FCC chair has been politically close to the current administration1 and one of the co-authors of Project 2025, a wish list of administration goals and potential paths to achieving its objectives. This puts telecom companies in a tough position, as it is not clear how much negotiating leverage they really have in this situation, especially given that VZ and AT&T are both still in the process of getting deal approvals. This may also result in increased scrutiny at the state level and put operators in a politically sensitive situation. It is also possible that operators have most favored nation (MFN) clauses in their existing MVNO deals – for instance with the cable companies – which could increase risk if favorable terms are extended to the Trump Organization."
GIL LURIA, HEAD OF TECHNOLOGY RESEARCH, D.A. DAVIDSON & CO, PORTLAND:
"The new wireless plan and handset announcement is the latest attempt by the Trump organization to capitalize on the President’s popularity, much like Truth Social, the DJT stock listing and crypto endeavors."
LAWRENCE LESSIG, LAW PROFESSOR, HARVARD
"No one who has been paying attention could miss that President Trump considers the presidency a vehicle to grow his family's wealth. Maybe this example will help more come to see this undeniable truth."
