U.S. President Donald Trump's family business licensed its name to a new mobile service in the United States and a $499 US smartphone on Monday, calling it Trump Mobile, in the latest deal brokered by the president's children to capitalize on his name while he is in office.

The new mobile venture, announced at Trump Tower in Manhattan, will operate using the networks of the three major U.S. wireless carriers. Some key details about the venture, including the financial terms of the licensing deal, were not immediately disclosed.

"We are going to be introducing an entire package of products where people can come and they can get telemedicine on their phones for one flat monthly fee, roadside assistance on their cars, unlimited texting to 100 countries around the world," said the president's eldest son, Donald Trump Jr.

The announcement also promoted the launch of a "sleek, gold smartphone" that will be "designed and built in the United States."

It is not known which U.S.-based company could deliver a phone at that price, a feat that has eluded the world's largest phone makers, including Apple. Despite the strength of U.S.-based tech brands, there is no significant domestic smartphone production infrastructure, largely due to high labour costs, supply chain complexity, and reliance on overseas component sourcing.

Eric Trump on a podcast on Monday suggested that the first delivery of the phones by August might not be made in the United States.

"Eventually, all the phones can be built in the United States of America," he said on The Benny Show podcast. There was no immediate word on any availability in Canada. 

Donald Trump has said he put his business interests in a trust managed by his children to avoid conflicts of interest, but income from such business ventures will eventually enrich the president, who sits atop the series of Trump family firms.

In Trump's financial disclosure released on Friday, he reported more than $600 million US in income from licensing deals, crypto projects, golf clubs and other ventures. Those numbers appeared to be through the end of 2024, before he was inaugurated for his second term as president. Since then, the Trump family's crypto projects alone have brought in hundreds of millions of dollars.

"No one who has been paying attention could miss that President Trump considers the presidency a vehicle to grow his family's wealth. Maybe this example will help more come to see this undeniable truth," said Lawrence Lessig, a law professor at Harvard Law School.

The Trump Organization has had a string of business failures tied to licensing, including Trump Vodka, Trump Steaks, Trump Mattresses, Trump Ice and Trump University.

U.S. call centres

The mobile service will include call centres based in the U.S., according to the announcement by the Trump Organization, the term the family uses to describe the president's multiple business ventures. Wireless service provider AT&T currently operates call centres in the United States.

T1 Mobile uses the "Trump" name under a trademark licence, similar to other Trump-branded ventures. According to the Trump Mobile website, the Trump Organization is not involved in designing the smartphone, manufacturing it, providing or selling the cellular service.

It was not immediately clear who is operating T1 Mobile LLC, which was registered in Florida in April under a Palm Beach Gardens address. The company's registered agent, attorney Stuart Kaplan, referred questions to the company's press handlers. Representatives of the Trump organization and T1's PR contact did not reply to requests for comment.

The U.S. mobile network market is dominated by three national carriers: Verizon, AT&T, and T-Mobile, which together control over 95 per cent of the wireless market. But mobile virtual network operators (MVNOs), which buy network capacity from the major U.S. carriers, are becoming increasingly popular for targeting niche markets.

Actor Ryan Reynolds was both an investor and spokesperson for Mint Mobile, a low-cost MVNO aimed at light phone users, which was later acquired by T-Mobile for $1.35 billion US.

It can be difficult for such ventures to make money, an analyst said.

"MVNOs account for barely three to four per cent of U.S. wireless subscriptions and customer churn tends to be high," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. "Unless Trump Mobile cracks the million-subscriber mark — well above most celebrity MVNOs — the financial impact is de minimis."

A website that went live after the announcement said the new Trump-branded smartphone will be available from September. The new network will be available for a subscription price of $47.45 US per month, a reference to Trump, who was the 45th U.S. president in his previous term and is now serving as the 47th.

"This latest move raises more questions than answers. As always the devil is in the details, given that it is unclear around the actual commercial relationship with the telecom players and so forth," said Paolo Pescatore, TMT analyst at PP Foresight.