How a Mexican Boxer Inspired Trump Mobile

The story behind Trump Mobile reveals a strategic blueprint tested long before the former president’s name was attached. The venture, spearheaded by executives from MVNO Liberty Mobile, directly mirrors a previous campaign built around Mexican boxing champion Canelo Álvarez. This earlier effort provided the essential playbook for launching a celebrity-endorsed wireless service, from its structure to its marketing promises. While the current project positions itself as a premium offering, its origins are firmly rooted in a more budget-conscious trial run.

According to executives Don Hendrickson and Eric Thomas, the concept emerged from internal discussions at Liberty Mobile. Hendrickson then personally pitched the idea to the Trump Organization. “I met with Eric Trump and his team,” he recounted, outlining a proposal designed to “help the American people.” What wasn’t initially apparent was that this wasn’t a novel concept. The team had already executed a nearly identical strategy five years earlier with Canelo Álvarez, targeting the Mexican American community in the United States.

Launched in May 2020, Canelo Mobile offered the same core promises now associated with Trump Mobile: extensive network coverage, value-added perks like free international calling, and affordable Android devices. The service debuted with two phone models, The Legend and The Champ, later adding a third called The Contender. These were straightforward budget handsets from the manufacturer Hotpepper, lacking any physical Canelo branding and instead featuring the maker’s chili pepper logo.

Where Canelo Mobile invested more visibly was in branded accessories. The company sold headphones emblazoned with Álvarez’s lettermark, along with bundles that included branded Bluetooth speakers, earbuds, and baseball caps. The phones themselves were differentiated primarily through software, featuring pre-installed apps tied to the boxer. These included a money-transfer service from a sponsor, a now-defunct workout app, and a discount prescription drug platform, a feature notably replicated by Trump Mobile.

The underlying cellular service for both ventures was and is provided by Liberty Mobile. Hendrickson describes the relationship with Trump Mobile as “umbilically connected.” For the earlier boxer-themed service, Liberty explicitly co-branded the offering with Álvarez. The lifespan of Canelo Mobile provides a potential glimpse into this business model’s trajectory. Its social media activity ceased in mid-2022, its website eventually went offline, and the domain name was listed for auction. The venture attracted limited public attention, but presumably generated enough revenue to encourage Liberty Mobile to refine the approach for a second, higher-profile attempt.

The most significant evolution from Canelo to Trump Mobile is the emphasis on proprietary hardware. While Canelo sold rebranded existing phones, Trump Mobile executives stress their involvement in creating the T1 Phone. Hendrickson calls this a key differentiator, claiming no other mobile virtual network operator has built its own device. The company highlights “final assembly” in Miami as evidence of this direct involvement, even as industry observers note that other carriers offer branded phones manufactured by third-party partners.

This focus on hardware presents a curious contrast with the executives’ description of their core business. Hendrickson explicitly states they are in the “razor blade business, not the razor business,” meaning selling service plans is the primary profit driver, not the phones themselves. He argues this allows them to sell hardware at a thinner margin, theoretically benefiting the customer. However, an analysis of the T1 Phone’s specifications suggests it competes in a crowded mid-range market where many comparable or superior devices are available at lower price points.

The shift from a boxer to a political figure also signifies a deliberate move upmarket. Canelo Mobile plans started at $15 monthly with phones from $199.99. In contrast, Trump Mobile’s sole plan is priced at $47.45 per month, with the T1 Phone listed at $499, a figure expected to rise significantly upon launch. The executives frame this premium pricing as a reflection of the Trump brand’s perceived stature. “You think of Trump and I immediately think of quality,” Hendrickson says, describing their mission as “honoring that legacy of quality and integrity.”

Whether this refined, premium iteration of the celebrity MVNO model will find lasting success remains an open question. The foundational strategy, however, was proven not in the political arena, but in the boxing ring.

(Source: The Verge)