BT and Verizon Form 50:50 Joint Venture for International Business, $4B Revenue

BT Group and Verizon Communications agreed to create a 50:50 joint venture that combines their international business units, covering enterprise connectivity, cloud and security services across 180 countries. Verizon will pay BT $625 million as part of the deal.

The combined entity generates roughly $4 billion in annual revenue. BT's international unit had been loss-making, according to Light Reading, making the tie-up a strategic move to offload a struggling division while gaining scale.

Joint venture structure and scope

The new company will serve multinational enterprises with cross-border connectivity, cloud networking, and managed security. Both carriers will contribute their respective international assets and customer contracts. The deal is expected to close in late 2025, subject to regulatory approvals.

• 50:50 ownership split between BT and Verizon.
• Verizon's $625 million payment to BT is intended to equalize the value of contributed assets.
• Services include SD-WAN, cloud interconnect, cybersecurity, and global IP networking.
• Combined customer base spans Fortune 500 firms and large public sector organizations.
• Operations will be headquartered in London, with regional hubs in the U.S., Asia and Europe.

Strategic rationale and market context

Both companies have been under pressure to improve margins in their international divisions. BT's global services unit reported an operating loss of £138 million in its most recent fiscal year. Verizon's international enterprise business, while profitable, has lacked the scale to compete effectively against larger rivals such as Equinix and NTT Communications.

The joint venture allows each partner to shed a capital-intensive business while still offering global services to their largest customers. Industry analysts view the deal as a consolidation move in the fragmented $60 billion market for multinational enterprise networking. Regulatory filings in the U.S. and UK are expected within the next six months. If approved, the joint venture will begin operations in early 2026, with a combined workforce of roughly 5,000 employees.