Microsoft's Tellme unveils mobile search service

Tellme Networks, the provider of automated voice response directory enquiries that is in the process of being acquired by Microsoft has launched a new mobile search service that allows users to request information, maps and directions via their mobile phones.

The launch of the service, which will be US-based initially, free to use and supported by advertising follows months of testing and comes on the heels of an announcement by computer web search leader Google to set up an experiment using speech recognition on telephones.

Tellme said its experience handling nearly 80 per cent of automated directory enquiries calls in the US provided the company with an understanding of what people search for on a regular basis over the phone.

Users who want to get maps and directions sent to their phone will be asked to download the Tellme by Mobile application at the company's web site.

Currently, users can pay mobile carriers more than $1 in the US and up to £1 in the UK to receive information such as phone numbers from a directory enquiries service.

The Tellme acquisition is expected to enhance Microsoft's position in searches done from mobile phones, which the company sees as a relatively untapped market where it can compete more favourably with Google and Yahoo.

Financial terms of the Tellme acquisition by Microsoft have not been disclosed. However, sources familiar with the situation claim the companies were in talks for a deal that could value the company at more than $800 million.

US antitrust authorities approved the acquisition on Friday, clearing the way for the deal to close during the current quarter.

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