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Microsoft buys Tellme

In its bid to play catch-up with Google, Microsoft has bought Tellme Networks - a voice services and automated directory assistance provider.

Microsoft has made the move for Tellme as it sees the acquisition is vital given where the next battle over search will be fought.

Tellme is an automated directory assistance service which answers millions of calls every day from people wanting information such as local businesses listings, driving directions, sports results, weather and news.

The reason analysts think Microsoft paid between $800 million and $1 billion for Tellme is to steal a march on Google by broadening out Internet search to include other forms which are enabled by the telephone's voice interface.

Tellme's client list is a who's who of blue chips including Fedex, American Airlines and American Express and there is a real opportunity to expand the mobile search and local search markets.

A press release about the acquisition states that Microsoft and Tellme share a vision around the potential of speech as a way to enable access to information, locate other people and enhance business processes any time and from any device.

In short, Microsoft believes that the next arena for the battle to win the hearts and minds of searchers is going to be mobile and local search, and that Tellme has what it needs to win.

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