Verizon and BT combine international operations through joint venture
By Jed Nykolle Harme
June 30, 2026
Photo Credits: Hindustan Times
US telecommunications company Verizon and UK telecommunications provider BT have agreed to combine their international business operations through a joint venture expected to generate around US$4 billion (€3.4 billion) in annual revenue. The agreement is designed to bring together their international enterprise businesses as both companies reshape operations to address changing customer requirements and improve operational performance.
According to Hindustan Times, citing Bloomberg, the companies will each hold equal voting rights in the new venture, which remains subject to regulatory approval. As part of the transaction, Verizon has agreed to make an equalisation payment of US$625 million (€531 million) to BT.
BT has been reviewing strategic options for its international division, which provides services to multinational corporations across approximately 180 countries. The report said the business has weighed on the company's growth for several years because many of its customer contracts generate limited profit while remaining expensive to maintain.
The report also noted that BT chief executive officer Allison Kirkby confirmed in 2024 that the company was considering a carve-out of the international unit as part of a broader strategy to refocus on the UK market. Bloomberg previously reported that BT had approached AT&T and Orange to explore potential partnership opportunities for the business.
For Verizon, the joint venture aligns with a wider operational strategy under chief executive officer Dan Schulman. The company is prioritising customer growth and improving returns from its existing infrastructure while reducing its workforce by around 20% and divesting businesses that are no longer delivering expected performance.
Verizon's international portfolio includes wireline assets, private networks and cybersecurity consulting services, serving enterprise customers including US embassies and the UK's Thames Freeport. The transaction allows both organisations to consolidate international capabilities while continuing to serve multinational customers through a shared operating structure.
Following the announcement, BT reduced its sales guidance, stating that its international business and other planned divestments would now be treated as non-core assets. The company expects adjusted group revenue of between £17.1 billion (€20.0 billion) and £17.6 billion (€20.6 billion) for 2027, compared with its previous guidance of £19 billion (€22.3 billion) to £19.5 billion (€22.8 billion), while adjusted EBITDA is forecast at £8.1 billion (€9.5 billion) to £8.2 billion (€9.6 billion).
