Conflict of Interest or Not, Trump Mobile Wireless is the New Normal

A scenario in which the family of the President of the United States sells wireless service under the President’s name is probably not something the Founding Fathers could have foreseen, writes tech writer Allison Johnson in The Verge. But with the launch of Trump Mobile, this is now a reality.

In business terms, however, it makes perfect sense as part of a larger trend she calls “Celebrities Selling Things.” 

The enabling factor with wireless services is that the carriers that actually operate the networks, which are limited to three in the US, have excess capacity. That means they are able to sell wireless services to so-called Mobile Virtual Network Operators, or MVNOs.

The MVNOs are then free to tap into market segments that the main carriers don’t want to address for various reasons, such as older individuals, credit risks, people whose first language is not English, and others.

MVNOs have become increasingly attractive to customers, according to Gerrit Schneemann, an analyst at Counterpoint Research, largely due to the rise of eSIM technology and the growing number of services being handled exclusively online. 

While the business opportunity is grounded in hard numbers, the celebrity factor has a life of its own. Techsponential analyst Avi Greengart credits Canadian actor and entrepreneur Ryan Reynolds for helping to launch this trend.

In 2019, Reynolds acquired an ownership stake in Mint Mobile, a company that utilized the T-Mobile network. He proved you could build the business by using yourself to generate an audience, a modus operandi that’s a natural fit for the Trump Organization, which is basically “a branding operation, even in real estate.”

The New York Times cited Jordan Libowitz, the vice president of communications for Citizens for Responsibility and Ethics in Washington, who raised ethical concerns about these endeavors.

“Whatever norms he was responsive to before,” Mr. Libowitz said, “he does not seem particularly interested in them now.”

With the launch of Trump Mobile, it may also raise cybersecurity concerns.