"It's unbelievable that the Trump family has created yet another way for President Trump to personally profit while in office," said Meghan Faulkner, communications director for Citizens for Responsibility and Ethics in Washington (CREW).
Trump has said he has put his business interests in a trust, which is managed by his children. The White House has maintained he acts on the interests of all Americans.
But Ms Faulkner said the latest venture raised familiar issues, including whether the new business will win customers from people hoping to influence Trump and how the president will craft policies and regulation for an industry in which his family now has a stake.
The Trump Organization did not respond to questions about its business partner and criticisms about potential ethics issues.
In announcing its plans, it said "hard-working Americans deserve a wireless service that's affordable, reflects their values, and delivers reliable quality they can count on".
It pitched a policy of "discounted" international calls to families with members serving outside the US in the military.
The announcement said the mobile service would have customer support staff based in the US to answer questions, as well as the gold-coloured phone, which is currently available for pre-order.
But tech analysts said it was unclear what company would manufacture the phone in the US, and also noted that the design of the device bucked current trends for wireless headphones.
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