US media cable and Telecom equity research, Barclays has commented, “Needless to say, it is quite unprecedented for a sitting president’s name to be attached to a commercial mainstream service that is regulated. None of the telecom companies have formally announced an agreement with the Trump Organization for an MVNO agreement, and therefore, it is not clear which entity is providing the network.”
Also adding “However, telecom is a highly regulated industry and the present FCC chair has been politically close to the current administration and one of the co-authors of Project 2025, a wish list of administration goals and potential paths to achieving its objectives. This puts telecom companies in a tough position, as it is not clear how much negotiating leverage they really have in this situation, especially given that VZ and AT&T are both still in the process of getting deal approvals. This may also result in increased scrutiny at the state level and put operators in a politically sensitive situation. It is also possible that operators have most favored nation (MFN) clauses in their existing MVNO deals – for instance, with the cable companies – which could increase risk if favorable terms are extended to the Trump Organization.”
Brian Mulberry, client portfolio manager from Zacks Investment Management, also commented on the matter for Reuters
“It's pointed at Apple, that's a really big downward price pressure on what Apple's trying to do."
"There's been kind of an opening for this type of device, if you will, simply because not just Apple, but Samsung devices to a certain extent as well, have really gotten so expensive in the moment in time, and we haven't seen that big of a measurable increase in utility."
"Most of the apps that you can download on a smartphone are just like super search kind of functions, if you will. So, having that same functionality at half the price, there's a market out there for that."
"I think it's going to get probably some extra attention just because it has Trump's name on it, but I think the marketplace has been ripe for this type of competition."
"Competition is always good for consumers, and that benefits markets in general. It's going to drive people to be more productive and compete more for consumers' dollars."
.webp)
.webp)
