Yes, more and more celebrities are entering the phone business. Heres why
NEW YORK (AP) — More and more celebrities are looking to attach their names to your phone. Or rather, wireless services that could power it.
From cosmetics to snacks and signature spirits, 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 — or MVNOs, an industry term for businesses that provide cell coverage by leasing infrastructure from bigger, more established carriers.
U.S. President Donald Trump's family was the most recent to join the list with the launch of Trump Mobile this week. Here's what to know.
On Monday, The Trump Organization (currently run by the president's sons Eric and Donald Jr.) unveiled Trump Mobile. The company says this new business will offer cell service, through an apparent licensing deal with 'all 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 — which already span from golden sneakers to 'God Bless the USA' bibles — despite mounting ethical concerns that the president is profiting off his position and could distort public policy for personal gain.
"This raises a real question about a conflict of interest,' said Ben Bentzin, an associate professor of instruction at The University of Texas at Austin's McCombs School of Business. As the sitting president, Trump appoints leadership for the Federal Communications Commission — 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 launched SmartLess Mobile, a name that mirrors the trio's 'SmartLess' podcast. 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 in 2019. Mint's parent, the Ka'ena Corporation, was later acquired by T-Mobile in a deal worth up to $1.35 billion.
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 — particuarly outside of the U.S., Forrester Research senior analyst Octavio Garcia Granados notes. He points to Walmart's 'Bait' mobile plan in Mexico, for example, as well as Italian soccer club AC Milan launching its own mobile SIM cards for fans.
'The MVNO market is not new," said Garcia Granados. 'What's new is the development on how it's consumed and the (ease) for brands to launch such plans.'
MVNOs have also emerged outside of high-profile brands or launch teams. Bentzin points to Straight Talk and Cricket — which are now owned by Verizon and AT&T, respectively. Still, traditional celebrity endorsements are common across the board. And in recent years, 'influencer marketing" has been 'the fastest growing area of advertising and promotion," he notes.
For Trump Mobile, the pitch seems to be all about having an 'all-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.' 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's website shows Trump's 'Make America Great' 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 'T1 Phone,' will be available for $499 in August — but notes that this device won't be designed or made by Trump Mobile. Still, the company emphasized that these phones will be built in the U.S.
Experts have since shared skepticism about that being possible in two months. And beyond the future T1 Phone, others stress that a monthly cell service fee of just under $50 is pricey compared to other MVNO options today.
'It's not actual lower pricing. It's really trading on the fan base, if you will, of Trump,' 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 'flexible, buy-in-bulk' 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 'because we'd had enough of the wireless industry's games' — 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 — 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.
'Seriously, if your phone bill knew how often you're on Wi-Fi, it would be embarrassed," Hayes said in a statement for SmartLess Mobile's June 10 launch.
MVNOs have proven to be attractive acquisitions 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 reportedly owned in 2023, when the company announced that it would be acquired by T-Mobile, 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 — 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,' he added.
Beyond a high-profile name, quality of service and what consumers can afford is also critical.
'The competition battleground here is brand and price,' 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 — like T-Mobile, Verizon and AT&T — offering this 'wholesale' access to their infrastructure.
As a result, he said, such high-profile ventures become 'a catalyst for others to follow."
AP Business Writer Bernard Condon contributed to this report from New York.
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