Microsoft Teams Phone review: turning Teams into a full business phone system
Add a full phone system to the collaboration tool you already use
Microsoft Teams Phone review: turning Teams into a full business phone system
Compare Microsoft Teams Phone pricing, calling plans, AI features and contact centre options — and see when a dedicated UCaaS provider is the better choice.
What is Microsoft Teams Phone?
Microsoft Teams Phone turns the chat and meetings tool most knowledge workers already use into a fully-fledged cloud phone system — a hugely compelling proposition for organisations standardised on Microsoft 365.
Teams Phone is an add-on to Microsoft Teams that adds PSTN calling — inbound and outbound calls to traditional phone numbers — alongside the chat, meetings and collaboration features Teams users already know.
For most organisations the question isn't whether Teams Phone works (it does), but whether it's enough. It's a strong, no-frills phone system. For sophisticated contact centre, advanced call analytics or specialised verticals (legal, healthcare), a dedicated UCaaS or CCaaS partner often complements or replaces it.
Solutions Microsoft Teams Phone offers
From cloud phone systems to AI call answering and full contact centre — here's what's in the portfolio.
Teams Phone (Calling)
PSTN calling inside Teams — make and receive calls from Teams desktop, web, mobile or a certified IP phone.
- Calls inside Teams
- Cloud auto-attendant
- Call queues
Microsoft Calling Plans
Microsoft-provided phone numbers and calling minutes, billed directly through your Microsoft 365 tenant.
- Numbers in 30+ countries
- Domestic & international plans
- Single Microsoft bill
Direct Routing & Operator Connect
Bring your own carrier or use a Microsoft-certified operator for SIP trunking, often at significant cost savings.
- BYO carrier
- Operator Connect partners
- Hybrid scenarios
Contact Centre Integrations
Integrates with leading CCaaS platforms (NICE, Genesys, Five9, Anywhere365) for full contact centre on top of Teams.
- NICE, Genesys, Five9
- Native Anywhere365
- Agent in Teams
Microsoft Teams Phone pricing
Teams Phone is licensed per user, on top of an eligible Microsoft 365 plan. Calling minutes are either bundled (Calling Plans) or sourced from a third-party carrier (Direct Routing).
Teams Phone Standard
- PSTN calling capability
- Cloud auto-attendant
- Call queues
- Voicemail with transcription
Teams Phone with Calling Plan
- Phone capability + UK minutes
- Domestic calling bundle
- Microsoft-managed numbers
Microsoft 365 E5
- Includes Teams Phone Standard
- Plus full E5 security & compliance
- Best for enterprise
Pricing notes
- •Requires a base Microsoft 365 license
- •Calling minutes via Direct Routing usually cheaper at scale
- •Operator Connect simplifies carrier procurement
Microsoft Teams Phone: the verdict
Where it shines and where it falls short, based on independent research.
Pros
- Single vendor and single login for chat, meetings and calling
- Already deployed for most knowledge-worker organisations
- Flexible carrier model (Calling Plans, Operator Connect, Direct Routing)
- Cheap at the entry tier compared to standalone UCaaS
Cons
- Limited native contact centre — typically needs a CCaaS add-on
- Call analytics and reporting are basic out of the box
- Setup and number porting can be complex without a partner
- Not ideal for vertical-specific workflows (e.g. healthcare triage)
Microsoft Teams Phone alternatives to compare
Smart shortlists usually include 2–3 providers. Here's who else to look at.
Microsoft Teams Phone frequently asked questions
How much does Microsoft Teams Phone cost?
Teams Phone Standard is £6/user/month on top of your Microsoft 365 license. Adding a Microsoft Calling Plan with UK minutes brings it to roughly £12/user/month. Direct Routing via a third-party carrier is often cheaper at scale.
Do I need Microsoft 365 to use Teams Phone?
Yes — Teams Phone requires an eligible Microsoft 365 base license (Business Basic and above, or Office 365 E1/E3/E5).
Can Teams Phone replace my contact centre?
On its own, not really. Teams Phone has call queues and auto-attendants but lacks full CCaaS features. Most organisations pair it with NICE, Genesys, Five9 or Anywhere365 for contact centre.
What is Direct Routing?
Direct Routing lets you bring your own SIP carrier into Teams Phone instead of buying minutes from Microsoft. It's typically cheaper at scale and gives you more control over numbers and routing.
Is Microsoft Teams Phone right for your business?
Answer 11 quick questions and we'll match you to the providers that actually fit your size, budget and use case — including Microsoft Teams Phone if it makes the shortlist.
Pricing
From £6 / user / month
Indicative - actual quote depends on your needs.
Free • No obligation • 2-minute matching
- 320M+ Microsoft Teams users globally
- Built on Microsoft 365 — single sign-on, single vendor
- Free expert advice — no sales pressure