BT, Verizon combine global units in JV

Operator heavyweights BT Group and Verizon outlined plans to combine their respective international operations in a 50:50 joint venture, creating a company representing approximately $4 billion in revenue.

The duo claimed the move would “transform international connectivity” by creating a company serving multinational organisations with more than 3,000 customers across more than 180 countries.

Verizon is to pay BT an equalisation amount of $625 million to guarantee even voting rights

The move is expected to complete in 2027, subject to regulatory clearance and closing conditions.

BT and Verizon stated the company would be designed for a cloud first world in the age of AI.

The JV brings together BT International with Verizon’s international enterprise fixed-line arm, with the breadth of operations expected to unlock “significant scale efficiencies across the combined global network and service operations”.

BT and Verizon plan to use the JV’s infrastructure to meet local compliance and sovereignty needs, create a strong platform and speed rollout of next-generation connectivity platforms.

Composition
Former Telstra and KPN executive Martijn Blanken was appointed CEO of the new business and is due to join BT from 1 September in preparation for completion of the deal.

BT CEO Allison Kirkby said the deal would create new opportunities, long-term value for its owners and an important step for the operator “as we deliver on our UK focused strategy”.

The deal spells the end of speculation around the future of BT International. Kirkby said in 2024 it could potentially sell the unit as part of an ongoing cost-cutting strategy.

It carved the business out into a separate unit in 2025.

Verizon has outlined sweeping staff cuts and a plan to improve returns domestically under CEO Dan Schulman’s leadership.

He said its international customers require scale and flexible connectivity which works seamlessly across borders.

“When we thought about how to best support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organisation dedicated to their needs.”

BT and Verizon stated their businesses would continue to operate independently until the transaction closes.