Final answer:
'False;. The 1996 Telecommunications Act allowed both cable and phone companies to enter into each other's markets, which is contrary to the claim that phone companies couldn't enter the cable TV business. This deregulation fostered greater competition in the telecommunications industry.
Step-by-step explanation:
The statement that the 1996 Telecommunications Act allows cable companies to offer telephone service but prevents phone companies from entering the cable TV business is false. The act paved the way for increased deregulation, leading to greater competition among service providers in both the cable and telephone sectors. It allowed for cross-industry competition, which means that phone companies were indeed allowed to offer cable services, and cable companies could provide telephone services. This was part of a move to increase competition and reduce monopolistic practices that had been common in the telecommunications industry.