Verizon and BT Group connected on a deal to combine their internation enterprise operations targeted at serving multinational organizations, a move that points toward a potentially more streamlined future for both telecom giants.

The agreement combines BT International and Verizon’s international enterprise wireline arm into a 50:50 joint venture (JV), with both holding equal voting rights to the combined entity. However, it should be noted that Verizon has also agreed to pay BT a $625 million “equalization payment,” which indicates BT’s superior positioning entering the JV.

The JV will provide commercial services to both BT and Verizon that can in turn be offered to their respective customers. The combination is said to serve more than 3,000 customers across more than 180 countries and count approximately $4 billion in combined annual revenue, with the firms noting “this breadth of operations will unlock significant scale efficiencies across the combined global network and service operations following completion.”

The JV will be incorporated in Bailiwick of Jersey and “headquartered and tax resident in the United Kingdom.” Both telecom operators did cite the usual need for regulatory approvals and “consultation with employee representation in countries where required.”

Long-time industry executive Martijn Blanken was appointed CEO for the new JV, having previously held senior leadership positions at firms like Telstra, Openwave Systems, EXA Infrastructure, and KPN. Blanken is set to join BT on September 1, at which time he will start work with BT and Verizon “while observing relevant regulatory requirements.”

Current BT International CEO Clive Selley will continue in that position until the JV is formally launched, while Verizon stated its “leadership remains unchanged.”

Executives from both operators pointed to the venture being targeted at AI-related services.

“Customers will benefit from new, secure and resilient connectivity platforms which are designed for the age of AI and sovereign where it matters,” BT Group Chief Executive Allison Kirkby noted in a statement. “It will create new opportunities for our people and long-term value for our owners.”

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

Enterprise overhaul

The deal is the latest move by both operators in reconfiguring their enterprise-focused operations.

Schulman has staked a mark on revamping the telecom giant’s operations, including hints at reducing investments on some of Verizon’s operating units. This was reinforced by CFO Tony Skiadas during an earnings call earlier this year.

“Noncore areas that are not aligned to growth, including legacy areas, are being significantly reduced and/or eliminated, and that includes areas such as business wireline, nondirectional products, technology as well, wholesale, legacy copper, and voice platforms, and even projects with too long of a payback,” Skiadas said.

BT has also been altering its enterprise strategy.

The carrier last year sold its BT Italia, financial cloud platform Radianz, and its Irish wholesale and enterprise business. And earlier this year it sold its BT Federal U.S. contracting subsidiary to 22nd Century Technologies (TSCTI) in a move to consolidate its U.K. operations.