BT has reportedly initiated discussions with AT&T and Orange to explore potential partnerships for its international operations. This step by the UK telecom giant indicates a strategic shift as their global division continues to face challenges. According to Bloomberg, which cited insiders, these discussions might even lead to a partial sale of BT’s global business.
Although these talks are in preliminary stages, BT is maintaining an open approach. “We’re keeping everything open and this means we’ve been speaking to third parties about a range of possibilities,” stated a BT spokesperson. This approach aligns with CEO Allison Kirkby’s strategic refocus after taking the helm of the company last year, emphasizing a UK-centered strategy.
Since Kirkby’s tenure began, BT has undergone significant transformations. Last month, they completed the sale of their Irish operations, marking a move towards focusing on core UK channels. Additionally, the structure within BT is reshaping, with Jon James soon taking over as CEO of BT Business.
Financial performance has shown stability in BT’s UK channels for the quarter ending December 2024. As Kirkby highlighted, their efforts towards cost transformation have been significant, particularly with energy cost management and productivity advancements. The sale of the Irish data center business further demonstrates BT’s commitment to this UK-centric business model.
The potential partnership discussions can bring value to BT, enabling them to alleviate some pressure from their global unit. In turn, they can strengthen their domestic market positioning. Such partnerships could also provide access to wider networks and emerging technologies through mutual collaboration.
