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Microsoft Teams Phone: The Complete Guide

A practical, evergreen guide to Microsoft Teams Phone: Calling Plans, Direct Routing, Operator Connect, licensing, certified devices, Copilot, and admin management, with links to deeper guides.

Microsoft Teams Phone turns Teams into your organization’s phone system, replacing (or connecting to) traditional PBX telephony so calling lives in the same app as chat and meetings. This page is the hub for everything I’ve written about it: the core concepts, the different ways to connect a phone number, licensing, devices, and how Copilot is starting to change the calling experience itself.

I keep this page updated as things change. If you want the month-by-month changelog instead, see my What’s New in Teams Calling, Meetings and Devices series.

What is Microsoft Teams Phone?

Teams Phone is Microsoft’s PSTN (public switched telephone network) calling capability inside Teams. Once it’s set up, a user can make and receive regular phone calls, transfer them, put them on hold, and use features like voicemail and call queues, all from the Teams client on desktop, mobile, or a certified Teams desk phone.

The part that trips people up isn’t Teams itself, it’s how you connect Teams to an actual phone number. There are three ways to do that.

The three ways to connect a phone number

Microsoft Calling Plans Microsoft is your carrier. You buy phone numbers and calling minutes directly from Microsoft, and it’s the simplest option to set up since there’s no third-party telephony provider involved. The trade-off is availability and cost, Calling Plans aren’t offered in every country, and per-minute rates can add up for organizations with heavy call volume.

Direct Routing You connect Teams to your own telephony provider (or an existing PBX) through a certified Session Border Controller (SBC). This is the flexible option: you keep your existing carrier contracts, get access to local providers Microsoft doesn’t support directly, and can integrate legacy on-prem telephony. It also takes more setup and ongoing SBC management.

Operator Connect A middle ground: your telephony provider integrates directly with Microsoft’s Operator Connect program, so you get carrier flexibility similar to Direct Routing without needing to manage your own SBC. Fewer providers support it than support generic Direct Routing, but where it’s available, it removes a real chunk of the operational overhead.

For a deeper walkthrough of Direct Routing specifically, including SBC requirements and when it’s worth the extra setup, see my Microsoft Teams Direct Routing: The Complete Guide.

Licensing

Teams Phone licensing has a habit of shifting, so treat any specific SKU list as a snapshot rather than gospel; check the Microsoft 365 licensing pages for the current state. The short version: you need a Teams Phone license (either standalone or bundled into certain Microsoft 365 plans) per user who needs calling, plus a calling plan subscription if you’re using Microsoft Calling Plans rather than Direct Routing or Operator Connect.

I go deeper into how the different license types map to real-world scenarios in my complete Teams licensing guide.

Managing phone numbers and admin tasks

Once numbers are assigned, day-to-day management happens in the Teams Admin Center. Common tasks include assigning and porting numbers, setting up call queues and auto attendants, and managing emergency calling locations.

If you’re specifically managing Direct Routing numbers, I’ve written a walkthrough of that process here: Manage Direct Routing numbers in the Teams Admin Center.

Certified devices

Teams Phone works on desktop, mobile, and browser, but a lot of organizations still want dedicated desk phones or room devices for reception areas, shared spaces, and staff who take calls all day. Microsoft certifies hardware from Yealink, Poly, AudioCodes, and others specifically for Teams Phone.

For the current device management model (MDEP and the Open Android Security Patching program that keeps certified Android-based devices updated), see the next step in Microsoft Teams devices management. I also cover new certified hardware releases as part of my monthly Teams Calling roundups.

Copilot in Teams Phone

Copilot is starting to change what happens during and around a call, not just in meetings. Recent additions include Copilot generating live call summaries and surfacing key insights during a call, and Copilot call delegation, where Copilot can answer an incoming call on your behalf, gather context on who’s calling and why, and even schedule a follow-up via Microsoft Bookings before you decide whether to pick up.

I covered the details of Ignite 2025’s Teams Phone announcements in Ignite 2025: Microsoft Teams Phone, and for the bigger picture of what Copilot does across Microsoft 365, see my Microsoft 365 Copilot: The Complete Guide.

Frequently asked questions

Do I need Direct Routing if I already have Calling Plans? No, they’re alternatives to each other, not additions. You pick one connectivity method per user (though a tenant can mix methods across different users if needed).

Can I keep my existing phone numbers when moving to Teams Phone? Yes, in most cases. Number porting is supported for Calling Plans, and Direct Routing lets you keep numbers with your existing carrier entirely, since Teams just routes calls through your SBC.

Do I need special hardware to use Teams Phone? No. Teams Phone works from the standard Teams desktop, web, and mobile apps. Certified desk phones and room devices are optional, useful for shared spaces or staff who prefer a physical handset, but not a requirement.

Which connectivity option is cheapest? It depends on call volume and geography. Calling Plans are simplest but priced per minute/number through Microsoft. Direct Routing and Operator Connect let you keep negotiated rates with an existing carrier, which is often cheaper at scale but comes with more setup.

Questions about your own Teams Phone setup? Drop a comment below or find me on LinkedIn.