BT and Verizon form $4 billion joint venture to deliver AI-ready connectivity across 180 countries

BT and Verizon Launch Major International Connectivity Partnership

BT and Verizon have announced the creation of a 50:50 joint venture that combines their international enterprise operations into a new international networking business targeting approximately $4 billion in combined annual revenue 1

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. The partnership will serve more than 3,000 multinational enterprises across more than 180 countries, creating what the companies describe as a "scaled international connectivity platform" designed specifically for a cloud-first AI-first world 1

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. Martijn Blanken has been appointed as CEO designate of the new venture, while Clive Selley will continue to lead BT International as CEO to ensure continuity during the transformation period 2

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Building Infrastructure for AI-Ready Connectivity

The driving force behind this joint venture is the urgent need to create AI-ready connectivity infrastructure capable of handling next-generation AI workloads. According to Dallas Dolen, PwC's Technology, Media and Telecommunications Leader for Technology Strategic Alliances, telcos need to spend around a trillion dollars to upgrade infrastructure over the next seven years, making this type of resource pooling essential 2

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. Joris van Oers, who leads BT's International Sales Unit, emphasized that large multinational enterprises and government agencies need to be AI-ready, which requires strengthened global coverage through the joint venture 2

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. The partnership will leverage BT's resilient communication and network services alongside Verizon's secure connectivity through its enterprise wireline arm 1

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Secure and Sovereign-Compliant Connectivity for Global Operations

BT CEO Allison Kirkby stated that customers will benefit from new, secure and resilient connectivity platforms designed for the age of AI and sovereign where it matters 1

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. Verizon CEO Dan Schulman added that international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments 1

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. By combining global scale with infrastructure designed to support local compliance and sovereignty needs, the venture will create a platform that meets data, operational and regulatory requirements across different jurisdictions 2

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. Verizon has agreed to pay BT an equalization payment of $625 million, and both companies will hold equal voting rights 2

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Network-as-a-Service Platform Powers Hybrid Cloud-Edge Orchestration

The joint venture will utilize BT Global Fabric platform as the data landing zone, providing Network-as-a-Service capabilities that support enterprise data and regulatory requirements at a country level 2

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. This platform enables enterprises to scale bandwidth, optimize performance and enhance cybersecurity through API-driven automation 2

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. Matt Swinden, Managing Director Strategy and Product for BT International, explained that the venture will accelerate the physical deployment of points of presence for the Global Fabric platform, while the R&D strategy remains well-established with customers already on the platform 2

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. The focus on cloud connectivity and hybrid cloud-edge orchestration addresses the need to reduce friction between cloud and edge environments, which is critical for AI agent orchestration 2

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Strategic Focus on Private Enterprise Networks and Cross-Border Services

The new international connectivity platform will focus on private enterprise networks, cloud connectivity, cybersecurity and cross-border connectivity as its foundational services 1

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. By spinning off operations for multinational enterprises into this joint venture, both BT and Verizon will be better positioned to focus on their respective domestic markets while providing support as equal shareholders 2

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. Alex Toro, SVP Finance at Verizon, described this as the best option for customers and both businesses, combining the wireline arms of BT International and Verizon International underpinned by a connectivity platform designed for multinational enterprises 2

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. The transaction is expected to close in 2027, with BT International and Verizon International continuing to operate independently until then 2

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. A $2.1 billion mega-deal signed between HCLTech and Verizon Business in 2023 will continue, with HCLTech supporting customer migration to the joint venture after regulatory approval 2

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