AT&T, which survived for over 100 years, is now history. AT&T's troubles began in 1984 when the government decided to deregulate the US telecommunications industry. As a result, AT&T was stripped of substantial assets leading to the formation of seven smaller firms, which later came to be known as baby bells. While the company was devoid of an important revenue source, falling long-distance call prices only worsened the situation. AT&T is facing tough times.When on January 31, 2005, Dave Dorman, the CEO of AT&T, America's largest telephone company, announced the decision to sell off Ma Bell to SBC, it marked the end of a golden chapter in the history of the US telecommunications industry. The demise of AT&T was shocking to not only millions of customers who subscribed to its service but to the entire America. Founded by the legendary Graham Bell, the man who invented Telephone which changed peoples' lives for ever, AT&T, for years, ruled the roost at the US telecommunications industry. It was an American icon, an innovator, a monopolist and a giant which got blindsided owing to the hubris and short-sightedness of the people who were supposed to guide it into future.

AT&T's troubles began to start when in 1984 the government decided to deregulate the US telecommunications industry. By that time AT&T has grown into a giant and pressure was building on the government to break its monopoly. Yielding to the growing demands for ending AT&T's monopoly the government not only decided to allow other telcos to enter the market but also to cut the monolith to size. As a result, AT&T was stripped off of substantial assets leading to the formation of seven smaller firms which later came to be known as baby bells; SBC is one of the baby bells. Ma Bell was restricted to long-distance services while baby bells were to operate in local call markets. While this devoid the company of an important revenue source, falling long-distance call prices only worsened the situation. AT&T was facing tough times.