Microsoft to acquire voice-search provider Tellme networks

Seattle: Software giant Microsoft Corp says it will acquire Tellme Networks Inc, a provider of voice-enabled mobile search, directory assistance and computerised, speech-driven customer service hotlines.

Though the company did not disclose the cost of the acquisition, some analysts estimate the transaction around $1 billion.

Based in Mountainview, California, Tellme is a privately held company. It runs American Airlines' computerised phone lines that allows flyers to check flight information, powers orders for Domino's pizzas through a voice-recognition system and, provides directory assistance for AT&T and Verizon Wireless.

Tellme's technology facilitates information and transactions for an estimated 40 million users each month.

Microsoft Corp. said yesterday, Tellme's technology could be applied to a wide range of products, including its office suite and mobile search, and also applications for the home and car.

Tellme and Microsoft also expect application in cellular and internet-based phones where callers would be asked what they want and depending on the answer, the devices could establish a conference call, deliver sports scores or directions to the closest cafe.