BT Group Plc has been in discussions with major telecommunications companies regarding potential partnerships to help improve its struggling international business, as per sources knowledgeable about the situation.
The UK-based company has reached out to potential partners such as AT&T Inc. and Orange SA to consider collaborations that might involve divesting a portion of its global division, the sources mentioned on the condition of anonymity due to the confidential nature of the talks. These discussions are in early stages, and there is no assurance that a deal will be finalized, the sources added.
BT's global division, which has been integrated into a larger business division, has been a long-standing drag on its growth indicators, experiencing consistent decreases in earnings and revenue over the years. Despite contributing around 11% of BT's revenue in the first half of the 2025 fiscal year, this segment is burdened by contracts that yield low profits and incur high maintenance costs as it supports customers globally.
In an effort to revitalize its operations, BT CEO Allison Kirkby's strategy has been to focus on the UK market where the company holds a strong position with both fixed-line and mobile customers. Kirkby has indicated plans to either partially or fully divest the international segment, or streamline its operations. Revenue from BT's global unit decreased by 9.9% to approximately £1.1 billion ($1.4 billion) in the six months ending in September compared to the previous year.
A BT spokesperson stated via email that the company is exploring various possibilities and engaging with external parties, without providing further details. Meanwhile, Orange declined to comment on any potential engagement, emphasizing its current business strategy. AT&T did not respond to requests for comments.
AT&T CFO Pascal Desroches refrained from commenting on a potential partnership with BT when queried recently. Desroches highlighted that AT&T would only pursue such opportunities if they align with the company's strategy to enhance their connectivity services and provide attractive returns to shareholders.
Following these developments, BT's shares saw a slight increase of 0.3% to 163.75 pence at 9 a.m. in London. The company's stock has recorded a 14% growth so far this year.