BT & Verizon form 50:50 venture for international ops

BT Group and Verizon have agreed to combine their international enterprise operations in a 50:50 joint venture. The new business is expected to serve more than 3,000 customers in over 180 countries.

The deal will combine BT International and Verizon's international enterprise wireline business into a standalone company focused on multinational organisations. The combined operation generates about USD $4 billion in annual revenue, and Verizon will make an equalisation payment of USD $625 million to BT.

The transaction still requires regulatory clearances, and the two businesses will continue to operate separately until completion. The companies expect the deal to close in 2027.

The joint venture will be incorporated in Jersey and headquartered and tax resident in the UK. Both parents will hold equal voting rights.

For BT, the agreement marks another step in a strategy that puts greater emphasis on its domestic market while reshaping its international arm. For Verizon, the transaction moves its overseas enterprise wireline activities into a jointly owned structure while allowing it to maintain direct customer relationships in the United States.

The new company is being positioned around cross-border connectivity services for large international customers, as telecoms groups adjust their networks and products to meet rising demand for cloud-based systems and the data needs linked to artificial intelligence.

Leadership plans

BT and Verizon said Martijn Blanken has been appointed Chief Executive Officer-designate of the joint venture, subject to completion of the transaction. He is due to join BT in September and will work with both parent companies as they prepare the new business.

Blanken has held senior roles at Telstra, Openwave Systems, EXA Infrastructure and KPN. Clive Selley will remain in charge of BT International during the transition, while Verizon's leadership structure will remain unchanged.

The deal creates one of the larger international telecoms platforms focused on multinational corporate customers. The business will combine global network operations with local compliance and sovereignty requirements, an increasingly important issue for businesses moving data across jurisdictions.

Those concerns have grown as companies face stricter regulation over data handling, security and the location of digital infrastructure. Large multinationals are also seeking fewer suppliers across multiple markets, pushing telecoms operators to reconsider the scale and structure of their international units.

BT has been working to improve the performance of its international division after pressure on earnings and demand in some legacy network services. Folding that business into a joint venture with Verizon gives it shared ownership of a larger international operation while allowing the wider group to keep its strategic focus on the UK market.

Verizon, meanwhile, gains a way to combine overseas assets with BT's international reach without giving up its presence with global enterprise customers. Its relationship with those customers will remain in place as it continues to provide connectivity services in its home market.

Allison Kirkby, Chief Executive Officer of BT Group, said: "The world's leading brands and international organisations trust BT International to connect them across the world. Bringing together this expertise and heritage with Verizon's deep relationships with multinationals will create a stronger, scaled connectivity partner - one that has the reach, innovation and investment to succeed. Customers will benefit from new, secure and resilient connectivity platforms, which are designed for the age of AI and sovereign where it matters. It will create new opportunities for our people and long-term value for our owners. Today's announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our UK-focused strategy."

Her comments reflect BT's view that the venture is both an operational combination and a portfolio move. The group has been trying to balance network investment needs with pressure to improve returns.

Dan Schulman, Chief Executive Officer of Verizon, said: "Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how best to support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organization dedicated to their needs. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the U.S."

Both existing businesses will maintain full commitments to their respective customers until the transaction closes.