Microsoft announced that they have acquired Teleo, Inc., a provider of Voice Over Internet Protocol (VOIP) software and services that enable people to place phone calls from PCs to traditional phones while delivering this technology in unique ways through a variety of software and Web applications. Microsoft is said to have plan to “incorporate and expand” upon Teleo technologies and integrate them into MSN. .

Combining the technology and expertise of Teleo with Microsoft’s existing VoIP investments in MSN is expected to help advance efforts to connect people to the information and people that matter to them ultimately enhancing the integration of rich voice capabilities throughout MSN communication and information services, including MSN Messenger.

Founded in 2003, Teleo’s initial beta offering, also called Teleo, allowed customers to use their PC to make VoIP calls to cell phones, regular phone or PCs. Through its integration with Microsoft Outlook and Internet Explorer, the Teleo service also facilitated “click to call” dialling of any telephone number that appears on screen – such as within a Web site, search results or e-mail.

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