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Until 1984, AT&T enjoyed a government regulated monopoly in the US telecommunication industry. In 1984, AT&T was divested into Baby Bells and the industry was opened for private player participation. By 1996, both the local and long distance industry was deregulated for the players. However, in 2005, two mergers were approved by the Federal Communications Commission (FCC). SBC (South Western Bell Corporation) merged with its parent company AT&T for $16 billion and Verizon merged with MCI for $8.5 billion. This case discusses how the merged entities with the help of their synergies would control the industry. It also discusses the proposed effects of mergers on price, quality and technological upgradation of services. The case ends with a question on whether the merged entities would serve the customers as before.