Final answer:
Under the 1996 Telecommunications Act, cable operators are indeed allowed to offer telephone services. This deregulation allowed for a more competitive environment and technological innovation in the telecommunications industry.
Step-by-step explanation:
Under the 1996 Telecommunications Act, significant deregulation occurred which impacted a variety of media and communication practices. Indeed, the act allowed for greater consolidation in the media industry but also opened the door for different entities, such as cable operators, to diversify their services. One key change involved telecommunications companies. Previously, these companies were limited in the range of services they could provide.
Before deregulation, companies providing local and long-distance services via wires faced technology constraints that essentially created natural monopolies, like AT&T's command over long-distance service. However, with advancements in technology such as microwave and satellite transmission, more firms could enter the market. Following this trend of liberating the communications market, the Telecommunications Act of 1996 furthered this by allowing cable operators the ability to offer telephone services, expanding the range of choices for consumers, and fostering a more competitive environment.
Therefore, when asked whether the 1996 Telecommunications Act allows cable operators to offer telephone services, the answer is true. This expansion was part of a larger trend to deregulate the industry, allowing for more competition and technological innovation within this field.