Verizon Communications Inc. says that the 50-50 joint venture it has created with BT Group will combine each companies’ international holdings into an entity designed for “a cloud-first world in the age of AI.”
Verizon says that the joint venture is expected to serve more than 3,000 customers in more than 180 countries that have combined annual revenues of approximately $4 billion.
The joint venture will team Verizon’s international enterprise wireline arm with BT International. BT and Verizon will have equal voting rights, with the American company paying BT $625 million in an equalization payment, according to the press release.
Martijn Blanken, who has worked at Telstra, Openwave Systems, EXA Infrastructure and KPN, is the Chief Executive Officer-designate of the Verizon/BT joint venture. He will join BT on September 1.
“Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments,” Verizon CEO Dan Schulman said in a press release.
“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 organization dedicated to their needs. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the U.S.”
Comments in the press release suggest that the strategy behind the joint venture is for both Verizon and BT to maximize revenue from international endeavors without losing focus on their domestic markets. The transaction is expected to close next year.
Several large providers are showing a willingness to partner where it makes sense. The most notable example came in May, when AT&T, T-Mobile, and Verizon agreed to partner on a direct-to-device (D2D) initiative aimed at eliminating dead zones and provide redundant connectivity.
