The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Liam Proud

LONDON, June 29 (Reuters Breakingviews) - The UK and US telecom groups will form a 50-50 venture for their international units, with $4 bln of revenue. It shows how the industry has retreated from an expansion that began in the 1990s, when growth hopes and valuations were high. Now, it’s all about defending a local lead.

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CONTEXT NEWS

BT and Verizon Communications have agreed to put their respective international operations into a 50-50 joint venture, the telecommunications companies said in a June 29 statement.

The combined group will have over 3,000 customers in more than 180 countries, with roughly $4 billion in annual revenue.

BT-compiled analyst revenue forecasts for the UK group's international unit are around £1.8 billion ($2.4 billion) for the current financial year, implying that it is contributing the larger of the two businesses. BT will receive a $625 million "equalisation payment," according to the statement. Such payments are usually necessary to compensate the party that is putting a larger operation into a 50-50 venture.

Shares in BT were up 0.6% as of 0936 GMT on June 29.

($1 = 0.7568 pounds)