The Friday File: Trump Mobile; BT AI risk; Mavenir debt deal

Mobile World Live (MWL) brings you our top three picks of the week as US President Donald Trump pushed into mobile, BT’s chief signalled deeper AI-related job cuts, and Mavenir boosted its balance sheet with a debt recapitalisation deal.

Trump Mobile goes for gold with 5G service launch

What happened: US President Donald Trump lifted the lid on Trump Mobile, a flashy gold-finish smartphone set to arrive later this year, alongside a 5G service backed by MVNO agreements with major US carriers.

Why it matters: The Android 15 powered smartphone will retail at $499, featuring a fingerprint sensor and AI-based face unlock. The mobile service will be powered by the country’s three major cellular carriers – AT&T, Verizon and T-Mobile US. During the announcement, Donald Trump Jr. positioned the offering as an all-American alternative; “We’re building on the movement to put America first,” he said. However, analysts have challenged claims that the smartphone will be entirely US manufactured. Leo Gebbie, principal analyst and director, Americas at CCS Insight, told BBC that the US “simply does not have the high-tech supply chain” required for domestic smartphone assembly at the moment, particularly considering the projected September release. The mobile play adds to a growing portfolio of Trump-branded products which brought in more than $600 million in revenue according to a recent financial disclosure. Meghan Faulkner, communications director of non-profit organisation Citizens for Responsibility and Ethics in Washington, told the news outlet: “It’s unbelievable that the Trump family has created yet another way for President Trump to personally profit while in office.”

Mavenir inks debt recapitalisation deal

What happened: Mavenir struck a recapitalisation deal with private equity company Siris Capital and its existing lenders to erase more than $1.3 billion in debt, while securing $300 million in fresh funding to improve its balance sheet.

Why it matters: CEO Pardeep Kohli explained the deal enables the company to home in on software and AI-driven telecoms solutions. “With a stronger balance sheet and lower leverage, we can double down on delivering an end-to-end, AI-native telco stack,” Kohli explained, adding that this positions Mavenir for profitable growth across both core and open RAN segments. Additionally, a spokesperson for the company told MWL that Mavenir is already integrating AI capabilities into its mobile core and RAN platforms in collaboration with tech players including Intel, Nvidia, and Microsoft. The latest move comes hot on the heels of a $75 million investment in May and a $100 million fundraising round in 2023 led by Siris. It also follows concerns raised by ratings company S&P Global in late last year about Mavenir’s ability to repay a $133 million long-term loan maturing in January 2025. Chris DePuy, analyst at 650 Group said Mavenir decision to “double down on software makes sense” as it aligns with longer-term trends including a shift in roaming and revenue contribution in the 6G era.

BT CEO hints at more job cuts on AI impact

What happened: BT Group CEO Allison Kirkby flagged the possibility of deeper job reductions than previously forecast as AI reshapes the operator’s overhaul strategy, Financial Times reported.

Why it matters: In an interview, Kirkby revealed that BT’s current cost-cutting roadmap which targets more than 40,000 job cuts and £3 billion in savings by 2030, may fall short of AI’s eventual impact. “Depending on what we learn from AI… there may be an opportunity for BT to be even smaller by the end of the decade,” she stated. The operator’s original strategy, set in motion under former chief Philip Jansen in 2023, aimed to slash up to 55,000 roles. Since taking the reins in 2024, Kirkby has further pushed transformation with a sharper focus on the UK. Her latest remarks arguably spotlight the transformational role of AI in restructuring telecoms from the top down, from operations to the workforce. Although Kirkby’s leadership has remained popular amongst investors as BT shares have seen an upswing since she took the helm, her AI-first approach signals potentially precarious times ahead for employees at one of the UK’s largest telecom operators.