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Mine is an E53 the voice control is a silver unit fitted at the top of the rack in the left cubby in the boot above the Nav unit it is a silver box about 10cm square and has a Blue plug. Yours is E70 so I believe its part of the bluetooth/telematic unit in the boot have a look at www.realoem.com enter the last 7 numbers of your Vin it will bring up the build spec for your car. Look under Communications. If you have a BMW specialist or a friendly dealer near by have a chat they may be able to upgrade the software, just a thought

I like your thinking that everything should work, however voice control (Mercedes and BMW) I believe is designed to be recalcitrant and disobedient !! You know its working correctly when the command is "Call Home" and the answer is " Navigation Off" or "Radio 2" My last Merc had problems similar to the one you describe, the Dealer could never find a fault yet if I unplugged the voice control unit and reconnected it it would work sometimes for months. The telephone function is the most useful. In the X5 I had problems but changed the unit with one from Ebay no rebellion in the last 6 months