NEW YORK (AP) 鈥� More and more celebrities are looking to attach their names to your phone. Or rather, wireless services .
From to , brands launched or co-owned by high-profile figures are just about everywhere you look today. But several big names are also venturing into the market for mobile virtual network operators 鈥� or MVNOs, an industry term for businesses that provide cell coverage by leasing infrastructure from bigger, more established carriers.
U.S. President family was the most recent to join the list with the . Here’s what to know.
Which big names have entered the phone business?
On Monday, The Trump Organization (currently run by the president’s sons Eric and Donald Jr.) unveiled Trump Mobile. The company this new business will offer cell service, through an apparent licensing deal with 鈥渁ll three major cellular carriers” in the U.S., and sell gold phones by August.
Trump Mobile marks the latest in a string of new Trump-branded offerings 鈥� which already span from to 鈥� despite mounting ethical concerns that the president is profiting off his position and could distort public policy for .
“This raises a real question about a conflict of interest,鈥� said Ben Bentzin, an associate professor of instruction at The University of Texas at Austin鈥檚 McCombs School of Business. As the sitting president, Trump for the Federal Communications Commission 鈥� and the family’s new phone venture exists under this regulatory authority.
All of this sets Trump Mobile apart from other big names that have recently ventured into the wireless business. Still, its launch arrives as a growing number of celebrities tap into this space.
Just last week, actors Jason Bateman, Sean Hayes and Will Arnett SmartLess Mobile, a name that mirrors the trio’s . Now live across the contiguous U.S. and Puerto Rico, SmartLess Mobile runs on T-Mobile’s 5G Network.
Another wireless provider with ties to fame is Mint Mobile. While not launched by celebrities, Ryan Reynolds purchased an ownership stake in Mint . Mint’s parent, the Ka鈥檈na Corporation, was later acquired by T-Mobile in a deal .
Beyond names of famous people, well-known brands that weren’t traditionally in the phone business have also got in on the action over the years 鈥� particuarly outside of the U.S., Forrester Research senior analyst Octavio Garcia Granados notes. He points to Walmart’s mobile plan in Mexico, for example, as well as Italian soccer club AC Milan its own mobile SIM cards for fans.
鈥淭he MVNO market is not new,” said Garcia Granados. 鈥淲hat鈥檚 new is the development on how it鈥檚 consumed and the (ease) for brands to launch such plans.鈥�
MVNOs have also emerged outside of high-profile brands or launch teams. Bentzin points to Straight Talk and Cricket 鈥� which are now owned by and , respectively. Still, traditional celebrity endorsements are common across the board. And in recent years, 鈥渋nfluencer marketing” has been 鈥渢he fastest growing area of advertising and promotion,” he notes.
What are these cell services offering? Why were they launched?
For Trump Mobile, the pitch seems to be all about having an 鈥渁ll-American service” while also tapping into the fan base of the president.
The company noted Monday that it chose to unveil Trump Mobile on the 10th anniversary of Trump launching “his historic presidential campaign.鈥� The name given to its flagship offer, The 47 Plan, and the $47.45 monthly fee make reference to the president’s two terms. And a mock-up of the planned gold phone on the company鈥檚 website shows Trump鈥檚 鈥淢ake America Great鈥� slogan on the front screen.
According to the company, Trump Mobile’s 47 Plan will include unlimited calls, texts and data through partner carriers, as well as free roadside assistance and telehealth services. It also says the new phone, called the 鈥淭1 Phone,鈥� will be available for $499 in August 鈥� but notes that this device won鈥檛 be designed or made by Trump Mobile. Still, the company emphasized that these phones will be built in the U.S.
Experts have since about that being possible in two months. And beyond the future T1 Phone, others stress that a monthly cell service fee of compared to other MVNO options today.
鈥淚t鈥檚 not actual lower pricing. It鈥檚 really trading on the fan base, if you will, of Trump,鈥� said Bentzin.
SmartLess Mobile and Mint Mobile, of course, don’t carry these same political ties. And the wireless plans offered by both boast less expensive offerings.
T-Mobile-owned Mint advertises 鈥渇lexible, buy-in-bulk鈥� plans that range from $15 to $30 a month. Each option includes unlimited talk and text nationwide, but vary depending on plan length and data amount. Mint, founded in 2016, says it started 鈥渂ecause we鈥檇 had enough of the wireless industry鈥檚 games鈥� 鈥� and promises to help consumers avoid hidden fees.
SmartLess Mobile’s plans also start at $15 a month. Depending on the data amount purchased, that base fee can rise to $30 鈥� but all of its plans similarly offer unlimited talk and text using T-Mobile’s network. When launching last week, SmartLess underlined that its goal is to help people stop paying for the data they don’t use, noting that the majority of data used by consumers today happens over Wi-Fi.
鈥淪eriously, if your phone bill knew how often you鈥檙e on Wi-Fi, it would be embarrassed,” Hayes said in a statement for SmartLess Mobile’s June 10 launch.
What’s the demand?
MVNOs have proven to be to big wireless carriers over the years. But whether or not the star factor promises significant demand has yet to be seen for the market’s most recent entrants.
For the more established Mint Mobile, Reynolds’ investment is a success story. The 25% stake that the actor in 2023, when the company announced , was estimated to give him a personal windfall of over $300 million in cash and stock. And since that deal closed, Reynolds has remained in his creative role for Mint and as the face of many campaigns 鈥� helping the brand continue to attract new customers.
It’s no surprise that the potential of such business returns might attract other celebrities to make similar investments, Bentzin notes. Still, newer ventures are untested. And “as the market becomes more crowded, it could be harder and harder to pick off individual consumers,鈥� he added.
Beyond a high-profile name, quality of service and what consumers can afford is also critical.
鈥淭he competition battleground here is brand and price,鈥� Bentzin said.
Still, if the marketing is right and product meets consumer needs, experts like Garcia Granados note that MVNOs can be a profitable business, for both the brands that start them and the telecommunications giants 鈥� like T-Mobile, Verizon and AT&T 鈥� offering this 鈥渨holesale鈥� access to their infrastructure.
As a result, he said, such high-profile ventures become 鈥渁 catalyst for others to follow.”
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AP Business Writer Bernard Condon contributed to this report from New York.
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