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Tellme Networks

Tellme Networks, Inc. was an American technology company founded in 1999 by Mike McCue and Angus Davis in , specializing in voice recognition, (IVR), and cloud-based services for mobile and enterprise applications. The company developed a VoiceXML-based platform that enabled speech-enabled , automated customer service, and voice-activated mobile search, delivering information such as stock quotes, weather, sports scores, flight status, and driving directions through and automated speech recognition. Its services powered nationwide and enterprise solutions for industries including , , healthcare, , and , with major clients such as , , and Merrill Lynch, reaching over 40 million users monthly by 2007. In March 2007, Microsoft Corporation acquired Tellme for approximately $800 million to bolster its speech technologies for unified communications, mobile search, and emerging products; the deal closed in May 2007, with Tellme operating as a subsidiary under 's Business Division and its 320 employees retained. Post-acquisition, Tellme's innovations were integrated into Microsoft offerings, including voice recognition for , voice search, and voice commands. In February 2012, Microsoft divested Tellme's speech-focused assets, intellectual property, and approximately 400 employees to 7 Customer, Inc. (now 7.ai), where they merged with Voxify to create enhanced cloud-based IVR and self-service solutions for contact centers.

History

Founding and Early Development

Tellme Networks was founded in February 1999 by Mike McCue, who served as the company's first CEO, and Angus Davis, who took on the role of . The founding team drew from experienced professionals in the tech industry, with McCue having previously led product development at and Paper Software, while Davis, a young engineer from , contributed technical expertise in web technologies. The company was established in , positioning it at the heart of Silicon Valley's innovation ecosystem. In its early stages, Tellme Networks secured significant to fuel its operations. The company raised $47 million in a Series A funding round in December 1999, led by prominent investors including Caufield & Byers and Benchmark Capital, with participation from individuals like Netscape co-founder Jim Barksdale and executive Bob Silverberg. This infusion followed an initial seed round of approximately $6 million earlier that year, sourced partly from employee contributions and angel investors, allowing the startup to build its infrastructure without immediate revenue pressures. Tellme's initial business model centered on developing telephone-based voice applications powered by speech recognition technology, aimed at creating interactive voice response (IVR) systems that enabled users to access information and services via phone calls. The focus was on bridging the web and telephony, allowing callers to interact with content through natural voice commands rather than keypads or text input. A key early milestone came in April 2000 with the launch of its pilot voice portal service, which provided free access to real-time information such as news, weather, and sports scores by dialing a single number (1-800-555-TELL). This service served as a demonstration platform to showcase Tellme's capabilities to potential enterprise clients, marking the company's entry into the emerging market for voice-enabled web access.

Expansion and Pre-Acquisition Milestones

During the early 2000s, Tellme Networks experienced significant operational scaling, establishing a nationwide network capable of handling substantial voice traffic. By 2006, the company's infrastructure processed nearly 2 billion calls annually, reflecting its maturation into a robust provider of voice-enabled services. Key milestones in this expansion included strategic partnerships with major telecommunications providers to power directory assistance services. Tellme collaborated with AT&T and Verizon to deliver automated 411 services, enabling voice-activated lookups for millions of users across landline and wireless networks. Concurrently, the company broadened its offerings into enterprise interactive voice response (IVR) solutions, developing scalable speech recognition platforms for business applications such as customer service automation. Tellme also gained notable media and cultural recognition during this period. The company was highlighted in Gladwell's 2000 New Yorker article "The New-Boy Network," which discussed innovative recruiting practices exemplified by Tellme's talent acquisition strategies. Additionally, Tellme served as a central subject in the 2001 documentary "Wild at Start," which explored the high-stakes environment of early-stage startup culture. By the mid-2000s, Tellme had grown to approximately 200 employees, supporting its expanded operations from its Mountain View headquarters. To enhance public accessibility, the company introduced the toll-free number 800-555-TELL, providing a dedicated gateway for voice portal services including search and .

Acquisition by

On March 14, 2007, Microsoft Corporation announced its agreement to acquire Tellme Networks, Inc., a provider of voice-enabled services, in a deal valued at approximately $800 million. The acquisition aimed to strengthen Microsoft's technologies, particularly for enhancing user interfaces in products such as and to support the development of advanced voice assistants. Tellme's established expertise in (IVR) systems and voice over Internet Protocol (VoIP) applications was seen as complementary to Microsoft's broader strategy for and mobile search integration, including with , , and Windows Automotive. The transaction closed on May 3, 2007, after which Tellme operated as a wholly owned of while maintaining its independent business operations. Tellme's CEO, Mike McCue, continued in his role as the senior leader of the subsidiary, reporting directly to , president of Microsoft's Business Division, to ensure a smooth transition. All of Tellme's more than 320 employees transitioned to as part of the acquisition, with the company retaining its headquarters and operations in . This structure allowed Tellme to continue delivering scalable, standards-based speech solutions to developers and customers in the immediate post-acquisition period.

Post-Acquisition Developments and Divestiture

Following the completion of its acquisition by in May 2007, Tellme Networks operated as a wholly owned from its , headquarters, initially employing more than 320 people. The company maintained its independent identity and culture while integrating with 's broader operations, including increased coordination with teams in , which introduced additional bureaucratic processes. By 2008, Tellme's workforce had expanded slightly to 360 employees, supporting ongoing voice service operations that handled approximately 2 billion calls annually, alongside a growing emphasis on to bolster Microsoft's capabilities. Over the subsequent years through 2012, Tellme's activities increasingly aligned with internal Microsoft initiatives, focusing on advancing core speech technologies rather than external commercial expansion. In February 2012, Microsoft announced an agreement to divest Tellme's (IVR) service business, including associated clients, technologies, and the majority of its employees—approximately 400 in total—to 24/7 Inc., a provider of customer experience solutions. This transaction merged Tellme's assets with 24/7's Voxify offerings to create an enhanced cloud-based platform capable of managing over 2.5 billion customer interactions per year. Microsoft retained long-term access to Tellme's core in speech and technologies through a licensing agreement and acquired an equity stake in 24/7 Inc. to support ongoing collaboration. Tellme's public-facing voice information services were transitioned to 24/7 Inc. under this divestiture, where they were integrated into the company's Predictive Experience platform to ensure continuity for existing users. 24/7 Inc. subsequently evolved into 24/7.ai, continuing to leverage the acquired technologies for customer service applications.

Technology and Services

Core Technologies

Tellme Networks developed its core technologies around open standards for voice application development and call management, enabling scalable (IVR) systems. The company prominently utilized , a for creating audio dialogs that incorporate synthesized speech, digitized audio, and recognition of spoken or DTMF (touch-tone) inputs, allowing developers to script voice applications similar to web-based pages. Tellme's platform supported VoiceXML 2.0, processing over 1 million such calls daily on a carrier-grade network for enterprise clients. Complementing VoiceXML, Tellme integrated CCXML for advanced call control, providing telephony support for dialog systems including outbound calling, call bridging, and monitoring, which separated call orchestration from dialog execution to enhance flexibility in multimodal applications. Additionally, the platform incorporated VoIP protocols such as SIP for connectivity, enabling developers to access Tellme Studio via VoIP softphones or hardware, thus supporting seamless integration of voice services over IP networks. At the heart of Tellme's speech processing was a proprietary (NLP) engine designed for real-time query handling in and IVR contexts. Tellme's platform architecture relied on a distributed, cloud-based with carrier-grade reliability, featuring multiple data centers for and load balancing to handle massive scale. This supported over 2 billion calls annually, representing nearly 80% of U.S. traffic, while maintaining and security for enterprise deployments. Among its innovations, Tellme pioneered speech-initiated services that minimized reliance on touch-tone inputs, allowing users to interact via natural spoken commands from the outset of calls, as demonstrated in its early voice portal for queries and information access. This approach improved by enabling open-ended prompts and reducing menu navigation, setting a foundation for modern voice assistants.

Key Service Offerings

Tellme Networks provided public services that functioned as a nationwide alternative to the traditional system, utilizing to deliver information over landline and phones. The company's offering was its search , accessible via the toll-free number 1-800-555-TELL, which enabled users to request access to forecasts, updates, scores, quotes, and listings through queries. This positioned Tellme as a key provider of free replacements, answering nearly 80% of automated calls in the United States. Originally launched under the 1-800-555-TELL number, the public service evolved following Microsoft's 2012 divestiture of Tellme's business to 24/7 Customer. In the enterprise sector, Tellme delivered custom (IVR) solutions for customer care, supporting automated handling of inquiries such as banking transactions and package status updates to streamline operations for businesses. By 2006, Tellme's platform processed over 2 billion calls annually, underscoring its extensive reach in voice-enabled services. These offerings relied on underlying technologies such as to define and deploy voice applications efficiently.

Customers and Applications

Major Corporate Customers

Tellme Networks established key partnerships with major telecommunications providers, notably and , to deliver services such as , enabling users to access phone numbers and information through voice-activated systems. These integrations powered automated responses for millions of calls, enhancing efficiency in operator-assisted queries for landline and mobile users. In the financial services sector, Tellme provided voice-enabled solutions for Merrill Lynch and , supporting voice banking, account inquiries, and trading requests via (IVR) platforms. These services allowed customers to retrieve balances, transfer funds, or execute trades hands-free, streamlining access for high-volume call centers in the brokerage industry. Tellme also served prominent clients in travel, entertainment, logistics, and food services, including for flight status and reservation information, for movie ticket purchases, for package tracking, and for order placements. utilized Tellme's to enable natural-language queries like "What's my flight status?" without menu navigation, marking an early adoption among major airlines. Similarly, integrated the technology for real-time shipment updates, while leveraged it for multilingual ordering, including Spanish-language support to broaden accessibility. Following Microsoft's 2007 acquisition, Tellme's enterprise customer relationships continued under Microsoft oversight until early 2012, when the IVR business unit, including intellectual property and an existing customer base, was divested to 24/7 Inc. (now 7.ai). This transition involved approximately 400 employees and ensured ongoing maintenance for IVR systems serving these corporate clients; the assets were integrated into 7.ai's AI-powered customer experience platform, which continues to offer enhanced self-service solutions as of 2025.

Public and Consumer Applications

Tellme Networks offered voice-based as a core consumer service, powering 411 lookups for major U.S. carriers including and Wireless, allowing users to obtain phone numbers and addresses via spoken queries over and phones. This integration made accessible to everyday callers without needing or visual interfaces, handling requests for residential, business, and government listings across the , , and . In addition to directory services, Tellme developed voice portals that delivered real-time information directly to consumers' phones, enabling access to updates, forecasts, headlines, quotes, scores, and driving directions through interaction. Users could dial toll-free numbers like 1-800-555-TELL to speak their requests, with the system responding audibly and often offering follow-up options such as call completion or additional details. These portals represented an early form of mobile , bridging and web content for non-smartphone users and emphasizing hands-free utility during commutes or multitasking. At its peak, Tellme's network processed approximately 2 billion calls annually by 2006, serving more than 40 million consumers each month and forming a significant, often unseen component of U.S. infrastructure. This scale highlighted the widespread adoption of Tellme's services in daily routines, with and information queries contributing to the bulk of consumer interactions. Following Microsoft's 2007 acquisition and the 2012 divestiture of Tellme's assets to 24/7 Inc., the public consumer-facing lines and services, including the Bing and 1-800-555-TELL voice portal, were discontinued in June 2012. Separately, discontinued services for its digital landline customers in January 2023.

Legacy and Impact

Integration into Microsoft Ecosystem

Following its acquisition in 2007, Tellme Networks' speech recognition engine became a foundational component of 's voice-enabled technologies, particularly contributing to the natural language processing () capabilities of , the launched in 2014. Tellme's expertise in scalable, cloud-based speech services enabled to handle complex user queries with contextual understanding, integrating voice input with search and semantic processing for tasks like reminders, navigation, and personalized responses. This integration marked a shift from traditional command-based systems to more intuitive, conversation-like interactions, with Tellme's engine powering the core speech-to-intent mapping that allowed to anticipate user needs. Tellme's technology also enhanced voice command features in , starting with in 2009 and extending to in 2010, where it enabled one-button access to calling, texting, searching, and app launching via natural speech. Users could issue hands-free commands like "call home" or "text Sarah I'm running late," with Tellme's recognition accuracy improving usability in mobile environments and setting the stage for deeper OS integration. Furthermore, Tellme's cloud speech innovations influenced the development of Cognitive Services' speech-to-text capabilities, providing the backend for real-time transcription and enterprise voice applications through collaborative advancements in scalable audio processing. Key personnel from Tellme played a significant role in advancing Microsoft's AI efforts, with figures like Larry Heck, who oversaw Tellme's speech technologies post-acquisition, leading the project as chief scientist and contributing to broader voice AI research within . Former Tellme engineers integrated into Microsoft's speech and teams, fostering innovations in models and deployment strategies that extended through the . This talent infusion helped evolve Tellme's legacy into sustained voice tech progress, culminating in 's partial retirement as a standalone app in Windows in 2023, after which its components shifted toward integration in and ecosystems.

Influence on Voice Technology Evolution

Tellme Networks played a pivotal role in advancing voice technology standards through its leadership in the development and adoption of , a key for creating voice applications. As a co-editor of the VoiceXML 2.0 specification, Tellme contributed directly to the (W3C) efforts, helping transform proprietary telephone networks into open architectures that integrated synthesized speech, digitized audio, and . By 2004, Tellme's engineering director emphasized that VoiceXML enabled widespread deployment, with over 10% of U.S. residents using such applications and projections for 25% within a year, fostering low-cost, personalized voice services for enterprises and consumers. This work influenced subsequent W3C voice web standards, promoting interoperability and scalability in (IVR) systems. Tellme significantly contributed to the industry's transition from touch-tone-based IVR to speech-driven systems, laying groundwork for more natural user interactions in voice AI. By pioneering " 2.0"—voice-activated services over networks—Tellme demonstrated scalable and that reduced reliance on DTMF inputs, enabling faster, more intuitive call handling. This shift influenced the evolution of modern voice assistants, serving as a precursor to technologies in and by emphasizing robust, real-time voice processing for everyday applications. Following its divestiture, Tellme's legacy persisted through the transfer of its IVR assets to 24/7 Inc. in 2012, where they were integrated into cloud-based platforms that continued to deliver accurate, scalable solutions. This preserved Tellme-derived technologies for , combining them with to enhance IVR efficiency. Additionally, Tellme's talent cultivation had lasting indirect influence, with over 40 alumni advancing to leadership roles at major tech firms, including contributions to Amazon's development by former executives like Nikko Strom and Bruce Buntschuh. In 2017, recognized Tellme as one of Silicon Valley's best under-the-radar companies for its role in nurturing such influential talent in voice AI.

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