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The Trump family officially enters the mobile communications industry! On the 16th, Donald Trump Jr. and Eric Trump announced the establishment of Trump Mobile in New York, which is the latest move by the Trump family to stir up the American telecommunications industry after a decade: with "The 47 Plan" at a monthly fee of $47.45, no contract, and "Made in America" as its trademark, directly challenging the $3 billion MVNO (Mobile Virtual Network Operator) market.
Pricing Higher Than Competitors, Additional Services as Selling Points
According to the announcement, "The 47 Plan" offers unlimited calls, texts, and data, along with third-party device maintenance, Drive America road assistance, telemedicine, and free international calls to over 100 countries. Compared to low-cost plans from Visible and Mint Mobile at around $25-30 per month, Trump Mobile's pricing is slightly higher, but aims to differentiate the market through additional services and brand recognition.
The golden T1 Phone, set to debut in August, boasts American design and production, priced at $499, set to directly compete with the iPhone 17.
"We want to ensure overseas military personnel can always stay connected with their families."
Eric Trump brings patriotic sentiment into the business narrative; Donald Trump Jr. adds:
"The company headquarters is in the United States, which is what customers want and deserve."
Network Rental Model Reduces Capital Expenditure
Trump Mobile adopts the typical MVNO "asset-light" strategy, renting networks from AT&T, Verizon, and T-Mobile through Liberty Mobile, enabling quick launch without building towers and saving on high CapEx. The company targets conservative and rural users, hoping to convert political support into high ARPU and generate market visibility through cash flow.
Market data shows the US MVNO market is about $3 billion in 2024, growing 7% annually, with room for growth. However, network rental may face speed throttling during peak hours, and higher pricing may challenge user loyalty. Additionally, brand licensing and regulatory uncertainties could pose potential challenges.
Key Points to Observe
Will it be welcomed by the market? Future focus will be on three curves: user growth, renewal rate, and additional service activation rate. If Trump Mobile can prove "patriotic service", effectively raise ARPU, and maintain stable network speeds, it may potentially expand this model to streaming, fintech, and other fields.
For consumers, whether it's worth it or not will soon be revealed in the next bill.
