Software giant Microsoft Corp. http://www.microsoft.com today announced it will enter the mobile voice recognition market by acquiring Tellme Networks Inc. http://www.tellme.com, a provider of voice services including nationwide directory assistance, enterprise customer service and voice-enabled mobile search.

The Mountain View, Calif.-based Tellme lays claim to mobile search services on 1-800-555-TELL. Founded in 1999, the privately held company answers millions of calls every day for information such as finding local businesses, driving directions, sports scores, stock quotes, weather, news, movie showtimes and more. In addition, businesses can use Tellme's voice services and platform to provide customers with voice-access services ranging from banking to package tracking. These services are built on Tellme's voice platform that analyzes caller requests to continually improve the system's accuracy and overall caller experience, the company said.

According to Microsoft, potential areas of development resulting from the deal will range from hosted voice-enabled customer service solutions that complement Microsoft's existing unified communications offerings to voice user interfaces in existing Microsoft products to search services on mobile phones that integrate with Live Search for mobile offerings. In addition, developers and partners will be able to build new speech-based solutions on top of a scalable, standards-based voice-enabled applications platform, Microsoft said.

"We've made great strides in speech technologies, but have only scratched the surface of what is possible," Jeff Raikes, president of the Microsoft business division, said in a statement. "The acquisition of Tellme will bolster Microsoft's existing speech capabilities, bringing both immediate and longer-term value to our customers and partners."

Financial terms of the acquisition were not announced. The deal is expected to be completed in Q2. Tellme, which has more than 320 employees, will continue to operate from its Mountain View headquarters as part of the Microsoft business division. Following the closing of the acquisition, the Tellme business is expected to be maintained, and members of the Tellme executive team and staff are expected to join Microsoft.

This is just the latest in Microsoft's ventures outside of the traditional software realm. Last week the Redmond, Wash.-based company's hardware devices group demonstrated the use of micro-devices using micro electro mechanical systems http://www.edn.com/article/CA6422701.html?partner=enews in an effort to build cheaper flat-panel displays with high resolution.