AT&T and British Telecommunications this week announced a joint venture targeting international calls including multinationals' communications needs.
Owned equally by the two parent companies, revenue estimates for the joint venture in its first year of operation are expected to be more than $US10 billion.
The joint venture will be formed from BT businesses with revenues which would have been $US2.3 billion with operating profits of $US300 million and fixed assets of $US1 billion, whilst the businesses to be contributed by AT&T would have had revenues of $US5.5 billion with operating profits of $US1 billion and fixed assets of $US2 billion.
The two telecom giants will combine their existing international networks and all their international traffic and products for business customers in the deal.
Their multinational accounts in some industry sectors will also be merged.
The two companies have also announced they plan to develop a global Internet Protocol-based network to support e-commerce and global call centres.
The joint venture, yet to be named, will have its own CEO and management team. Its board of directors will comprise executives from both parent companies, with Iain Vallance, BT's chairman, as its first chairman.
In a second, separate announcement, the two companies have announced they will invest $US0.5 billion each in US high-tech and communications businesses.