Two nuggets I dug up from Google.
Short for Dual Tone Multi-Frequency, the system used by touch-tone telephones. DTMF assigns a specific frequency, or tone, to each key so that it can easily be identified by a microprocessor.
DTMF means Dual Tone Modulation Frequency. This systems is intended to transmit keys pressed on a keyboard through an audio channel such as a telephone line or a radio connection. For each pressed key two audio frequencies are emitted: one (higher) corresponds to the column in which the key is in, and the other (lower) corresponds to the row. This encoding handles a maximum of 4 rows and 4 columns, that means 16 keys (from 0 to 9, *, #, and from A to D). The lower frequency (corresponding to the row) is emitted with less amplitude than the higher one, and precisely of 2 dB (that means that the amplitude is 1.259 times smaller).