Alexander Graham Bell was the son and grandson of authorities in elocution and the correction of speech. Educated to pursue a career in the same specialty, his knowledge of the nature of sound led him not only to teach the deaf, but also to invent the telephone.  Alexander Graham Bell’s success with the telephone came as a direct result of his attempts to improve the telegraph. When Bell began experimenting with electrical signals, the telegraph had been an established means of communication for some 30 years. Although a highly successful system, the telegraph, with its dot-and-dash Morse code, was basically limited to receiving and sending one message at a time. Bell’s extensive knowledge of the nature of sound and his understanding of music enabled him to conjecture the possibility of transmitting multiple messages over the same wire at the same time. He and Thomas Watson, a young electrician whose services he had enlisted, were also exploring an idea that had occurred to him in 1874 – that of developing a device that would transmit speech electrically.

By June 1875 the goal of creating a device that would transmit speech electrically was about to be realized. They had proven that different tones would vary the strength of an electric current in a wire. To achieve success they therefore needed only to build a working transmitter with a membrane capable of varying electronic currents and a receiver that would reproduce these variations in audible frequencies. On June 2, 1875, Alexander Graham Bell while experimenting with his technique called “harmonic telegraph” discovered he could hear sound over a wire. The sound was that of a twanging clock spring.

Bell’s greatest success was achieved on March 10, 1876, marked not only the birth of the telephone but the death of the multiple telegraph as well. The communications potential contained in his demonstration of being able to “talk with electricity” far outweighed anything that simply increasing the capability of a dot-and-dash system could imply. Alexander Graham Bell’s notebook entry of 10 March 1876 describes his successful experiment with the telephone. Speaking through the instrument to his assistant, Thomas A. Watson, in the next room, Bell utters these famous first words, “Mr. Watson — come here — I want to see you.”

Reference:

http://www.historyorb.com/day/march/10

http://inventors.about.com/od/bstartinventors/a/telephone.htm