BT and Verizon announce new joint venture

BT Group (BT) and Verizon Communications have announced an agreement to merge their international enterprise operations into a 50:50 joint venture. The partnership will combine their respective capabilities to provide connectivity services to more than 3,000 clients across 180 countries, with a combined annual revenue of $4 billion.

The joint venture will focus on supporting cloud-based operations and artificial intelligence-driven environments by bringing together BT International’s secure communication and network services with Verizon’s international connectivity operations. Both companies will retain equal voting rights, with Verizon making a $625 million equalisation payment to BT.

The venture will aim to provide customers with connectivity solutions designed to support operational requirements, local compliance obligations, and regulatory standards, while offering secure and resilient network services.

The collaboration is intended to allow BT and Verizon to maintain greater focus on their respective domestic markets while jointly developing and supporting the new enterprise. Martijn Blanken has been appointed as CEO-designate of the joint venture, bringing experience in telecommunications and digital infrastructure.

BT International will continue to operate under the leadership of CEO Clive Selley, while Verizon’s existing management structure will remain unchanged. The joint venture represents a development for both companies, with the aim of combining their international enterprise operations and improving operational efficiency.

The launch of the joint venture remains subject to regulatory approvals and consultations with employee representatives in relevant countries. Until the required approvals and clearances are received, both companies will continue to independently serve their existing international customers.