Trump family's next venture, a mobile phone company
President-elect Donald Trump, center left, takes the oath of office during the 60th Presidential Inauguration in the Rotunda of the U.S. Capitol in Washington on Monday. (Associated Press)
The Trump family is licensing its name to a new mobile phone service, the latest in a string of ventures announced while Donald Trump is in the White House despite ethical concerns that the U.S. president could mold public policy for personal gain.
Eric Trump, the president's son running The Trump Organization in his absence, announced a new venture Monday called Trump Mobile. The plan is to sell phones that will be built in the U.S., and the phone service will maintain a call center in the country as well.
The announcement of the new mobile phone and service, called T1 Mobile, follows several real estate deals for towers and resorts in the Middle East, including a golf development in Qatar announced in April. A $1.5 billion partnership to build golf courses, hotels and real estate projects in Vietnam was approved last month, though the deal was in the works before Trump was elected.
Even oversight of such a company, with the Trump name attached, raises ethical concerns.
Trump has already used the federal government to reward his allies and punish his enemies. The Federal Communications Commission, the primary regulatory body overseeing mobile phone companies, has already launched investigations of media outlets Trump dislikes and, in some cases, is personally suing.
Eric Trump said Monday that consumers deserve a phone that aligns with their values.
'Hard-working Americans deserve a wireless service that's affordable, reflects their values, and delivers reliable quality they can count on,' he said in a statement.
The company would also enter a highly competitive market that includes companies that have been directly attacked by Donald Trump.
The president criticized Apple last month because it planned to make most of its U.S. iPhones in India, and threatened to slap a 25% tariff on the devices unless the tech giant starts building the phones domestically.
The Trump phone deal comes as a mandatory financial disclosure report just filed with the government shows the president has moved fast in the last year to profit off his celebrity, taking in $3 million in revenue from selling 'Save America' coffee table books, $2.8 million from Trump watches and $2.5 million from Trump branded sneakers and fragrances.
The Trump Organization on Monday said the new, gold-colored phone available for $499 in August, called the T1 Phone, won't be designed or made by Trump Mobile, but by another company.
The Trump Organization did not respond immediately to a request for more details.
In the first term, Trump was blasted by conservative and liberal government ethics experts alike for opening his Washington hotel to lobbyists and diplomats and violating his company's pledge to avoid even the appearance of a conflict between his private profit and the public interest.
The company is feeling more emboldened now in the second term.
The mobile service is partnering with existing cellular carriers with access to a 5G network, raising questions of how they will be treated by federal regulators now that they have partnered with his company. The Trump Organization said those companies are America's three biggest mobile network providers, an apparent reference to Verizon, AT&T and T-Mobile, the latter with a trademarked name that is very similar to Trump's T1 Mobile.
The name given to the monthly service offer, The 47 Plan, and the monthly fee of $47.45 make reference to Trump's two terms, the 45th and the 47th. The service will include unlimited calls, texts and data and free roadside assistance and telehealth services.
A mock-up of the planned phone on the company's website shows Trump's slogan 'Make America Great' on the front and an etched American flag on the back.
By sticking to licensing, the Trump family is limiting its risk. Still, the new service faces big challenges if it hopes to sell beyond the president's loyal MAGA fans.
The Trump company tried to tap into support among the middle class in the first term with two mid-priced hotel chains. Called American Idea and Scion, and unveiled like the phone service Monday under a giant U.S. flag in the Trump Tower atrium, they flopped.
Despite taking in millions of dollars each year in various licensing deals and a string of new ventures, the Trump brand has taken a series of hits to its brand over the years.
During his first term, the Trump name was stripped off residential buildings and hotels in Toronto, Panama and Manhattan.
The Trump International Hotel in Washington, since sold, lost money even though the family opened its doors to businesses and governments trying to shape U.S. policy.
The average condo in 11 Trump-branded residential towers around the country underperformed the broader market during and immediately after Trump's first term. More recently, the value of Trump condos in New York City fell in the past two years as similar properties rise in value, according to brokerage CityRealty.
The Trump Organization has had more success with some ventures launched in the first few months of his second term.
Trump Media & Technology Group, a Florida company that operates the Truth Social media platform, filed plans with security regulators Monday to launch an exchange-traded fund tied to the prices of two popular cryptocurrencies.
The ETF is part of the Trump family's rapidly growing crypto empire, which includes a new stablecoin and launching and promoting memecoins.
The president's most recent financial disclosure report reveals he made more than $57 million last year from World Liberty Financial, a crypto company he and his sons helped launch in September.
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