Microsoft Teams Phone UK: Pricing, Setup & Best Options Quick Answer
Microsoft Teams Phone turns Microsoft Teams into a cloud business phone system that allows your employees to make and receive external calls using business telephone numbers through the Teams desktop, mobile and compatible desk-phone apps.
It’s a great setup for businesses that already use Microsoft 365 and want calls, meetings and internal collaboration in the same platform. However, Teams Phone is not a complete PSTN phone service by itself. You also need a way to connect Teams to external telephone networks.
The four main options are:
Microsoft Calling Plans – Microsoft provides the external calling serviceOperator Connect – an approved telecoms operator provides PSTN callingDirect Routing – your chosen carrier connects to Teams through a Session Border ControllerTeams Phone Mobile – participating mobile operators connect mobile numbers directly with Teams
Microsoft currently lists Teams Phone Standard at £7.70 per user/month excluding VAT , paid annually. Teams Phone with pay-as-you-go calling is currently £9.20 per user/month, while the UK domestic-calling package is £13.10 per user/month. A separate eligible Teams licence is required.
Most businesses should compare Teams Phone against hosted VoIP rather than assuming Microsoft is automatically cheaper.
Free quotes • No obligation • Compare Teams Phone, Operator Connect, Direct Routing and hosted VoIP
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Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: October 2026
Key Takeaways
Teams Phone adds cloud PBX functionality to Microsoft Teams.
You still need PSTN connectivity to make and receive external telephone calls.
Microsoft currently offers Calling Plans, Operator Connect, Teams Phone Mobile and Direct Routing as PSTN options.
Teams Phone Standard currently costs £7.70 per user/month excluding VAT.
UK domestic calling currently costs £13.10 per user/month including Teams Phone Standard.
Operator Connect is often attractive where you want a telecoms operator to manage PSTN connectivity.
Direct Routing is more relevant for complex estates, existing carriers, PBXs or specialist routing.
Hosted VoIP may still be simpler for businesses that do not already rely heavily on Microsoft 365.
Contact-centre teams may need additional software beyond standard Teams Phone.
What Is Microsoft Teams Phone? Microsoft Teams Phone is Microsoft’s cloud-based business telephony capability inside Teams.
It can provide:
business telephone numbers
external inbound and outbound calls
call forwarding
voicemail
call queues
auto attendants
call transfer
desktop and mobile calling
compatible desk phones
Microsoft describes Teams Phone as a cloud phone system and says it can connect to the PSTN through Microsoft Calling Plans, Operator Connect or Direct Routing. Teams Phone Mobile can also connect participating mobile operators with Teams.
Microsoft Teams Phone Pricing UK 2026 Microsoft currently publishes the following UK prices:
Teams Phone option Current price What it includes
Teams Phone Standard
£7.70/user/month
Cloud phone system; PSTN service added separately
Teams Phone + pay-as-you-go
£9.20/user/month
Teams Phone plus metered outbound calling
Teams Phone + UK domestic calling
£13.10/user/month
Teams Phone plus UK domestic calling plan
Teams Phone + domestic/international calling
£26.10/user/month
Teams Phone plus domestic and international calling allowance
Prices exclude VAT and are based on annual subscriptions. Microsoft states that a separate eligible Teams licence is required.
The UK domestic-calling package currently includes a phone number and 3,000 outbound domestic calling minutes. The domestic-and-international option includes 3,000 outbound domestic or 600 outbound international minutes for UK users.
What Is the Real Cost of Microsoft Teams Phone? The published Teams Phone price is not necessarily the total cost of your business phone system, and your final cost can include:
Cost layer Why it matters
Microsoft 365 / Teams licence
Required alongside Teams Phone in many setups
Teams Phone licence
Adds PBX and external-calling functionality
PSTN calling
Calling Plan, Operator Connect, Direct Routing or Teams Phone Mobile
Numbers
Existing numbers may need porting
Setup
User configuration, routing and migration
Support
May come from Microsoft, operator or specialist partner
Hardware
Optional Teams-compatible phones and headsets
Recording
May require additional software
Contact centre
Advanced sales/support requirements may need separate tools
This is why two businesses with the same number of Teams users can have very different telephone-system costs.
Compare Teams Phone Setup Costs
Microsoft Calling Plans vs Operator Connect vs Direct Routing
Option Best suited to Main advantage Main trade-off
Calling Plans
Simple Microsoft-led setups
Microsoft supplies both Teams Phone and PSTN calling
Less carrier flexibility
Operator Connect
Businesses wanting managed carrier connectivity
Operator manages PSTN infrastructure
Dependent on participating operator options
Direct Routing
Complex or existing telecoms estates
Greater carrier and routing control
Requires more technical infrastructure
Teams Phone Mobile
Mobile-heavy workforces
Combines mobile number and Teams calling
Depends on participating mobile operator
What Is Microsoft Calling Plan? Microsoft Calling Plans use Microsoft as the PSTN carrier, which means the business can buy Teams Phone and external telephone calling directly within the Microsoft ecosystem.
Microsoft currently offers:
pay-as-you-go calling
domestic calling
domestic and international calling
This is one of the simplest approaches because you do not need to integrate a separate carrier infrastructure – great for:
small teams
simple cloud-first businesses
organisations wanting fewer suppliers
What Is Operator Connect? Operator Connect allows a Microsoft-certified telecoms operator to provide PSTN calling for Teams Phone.
The operator handles the PSTN infrastructure, while administrators manage users and numbers through the Teams environment.
Operator Connect can suit businesses that:
want provider-led number porting
want telecoms support alongside Teams
want more carrier choice than Calling Plans
do not want to manage SBC infrastructure
What Is Direct Routing? Direct Routing lets a business connect its own carrier or telephony infrastructure to Teams Phone using a Session Border Controller,
already have a PSTN carrier relationship
need to integrate with third-party PBXs
need advanced voice routing
want greater control over their telephony infrastructure
have complex or multinational deployments
Direct Routing requires more planning because businesses need supported SBC infrastructure, networking, certificates and voice routing.
What Is Teams Phone Mobile? Teams Phone Mobile connects a participating mobile operator with Microsoft Teams Phone, which can let users make and receive business calls through either:
their smartphone’s native dialler
Microsoft Teams
Which Teams Phone Setup Should You Choose?
Business requirement Option to compare first
Very simple Microsoft-only setup
Calling Plans
SME wanting managed telecoms support
Operator Connect
Existing telecoms carrier relationship
Operator Connect or Direct Routing
Legacy PBX integration
Direct Routing
Complex routing requirements
Direct Routing
Mobile-heavy workforce
Teams Phone Mobile
Mixed requirements
Combination of connectivity options
Microsoft allows organisations to combine connectivity models within the same Teams environment.
Microsoft Teams Phone vs Hosted VoIP This is one of the most important decisions for UK businesses considering Teams Phone.
Feature Microsoft Teams Phone Hosted VoIP
Best for
Microsoft 365-heavy organisations
Businesses wanting a standalone phone system
Main advantage
Calls inside Teams
Dedicated telephony experience
Pricing
Layered licensing and calling
Often simpler per-user pricing
Deployment
Ranges from simple to highly technical
Usually provider-led
Mobile/desktop app
Teams
Provider application
Calling provider
Microsoft/operator/carrier
VoIP provider
Call queues
Available
Usually available
Auto attendants
Available
Usually available
Advanced contact centre
May need extra tools
Available through specialist platforms
Support
Can involve Microsoft, operator and partner
Usually one telecoms provider
Teams Phone usually makes the most sense where Microsoft Teams is already central to how employees work.
See our hosted VoIP guide or main business VoIP phone systems comparison .
Does Teams Phone Replace a PBX? For many businesses, yes!
Microsoft positions Teams Phone as a cloud PBX replacement, supporting features such as:
call forwarding
call transfer
voicemail
call queues
auto attendants
business telephone numbers
Does Microsoft Teams Phone Include a Phone Number? Not simply because you buy Teams Phone Standard.
Microsoft states that phone numbers are provided through the service that connects your Teams tenant to the PSTN.
That could be:
Microsoft Calling Plans
Operator Connect
Teams Phone Mobile
Direct Routing provider
Can You Keep Existing Business Numbers? Usually, yes, but number porting depends on the connectivity option and provider.
Operator Connect providers, for example, can support acquiring and porting phone numbers as part of the operator service.
Do not cancel your existing telephone service before the port is confirmed and tested.
Microsoft Teams Phone for Small Businesses Teams Phone can work well for a small business where:
employees already use Microsoft 365
Teams is used daily
users work remotely or hybrid
telephone requirements are relatively straightforward
A small business that only needs a professional phone number, voicemail and basic routing may find standard hosted VoIP simpler.
See our small business phone systems guide if you’re comparing broader options.
Microsoft Teams Phone for Remote Teams Teams Phone is naturally suited to distributed work because the same Teams application can be used across supported desktop and mobile devices.
Employees can make and receive calls without being tied to one desk or office.
If remote working is the main requirement rather than Microsoft specifically, see our VoIP for remote teams guide .
Microsoft Teams Phone for Sales Teams Teams Phone can handle normal business calling for sales teams, but high-volume sales operations may need more specialised capabilities and you should compare whether you need:
advanced CRM integration
power diallers
sales coaching
conversation intelligence
advanced recording
outbound automation
If these are central to the requirement, compare dedicated options using our VoIP for sales teams guide .’
Can Teams Phone Run a Contact Centre? Teams Phone can support ordinary queues and auto attendants, but a complex contact centre may require additional software.
Advanced operations could need:
skills-based routing
workforce management
supervisor monitoring
advanced reporting
quality management
omnichannel customer service
If you need these features, see our VoIP for call centres guide .
Microsoft Teams Phone Call Quality Microsoft Teams Phone needs stable connectivity rather than simply very high broadband speeds.
Call quality can be affected by:
latency
jitter
packet loss
Wi-Fi
network congestion
VPN routing
Microsoft provides Call Quality Dashboard and automatic bandwidth controls to help organisations monitor and optimise calling performance. It also advertises a financially backed 99.999% uptime SLA for Teams Phone, Teams Calling Plans and Audio Conferencing.
For technical guidance, see our VoIP call quality guide , jitter and latency guide and VoIP bandwidth guide .
Microsoft Teams Phone Setup Checklist Before migrating, confirm:
Which Microsoft 365 licences you already have.
Which users genuinely need external calling.
Whether you need Calling Plans, Operator Connect, Direct Routing or Teams Phone Mobile.
Which existing numbers need porting.
Whether you use any analogue or legacy devices.
Which users need call queues or auto attendants.
Whether call recording is required.
Whether you need a contact-centre platform.
Whether your CRM needs to integrate with the phone system.
Which desk phones or headsets are required.
Whether the business network is ready for voice traffic.
Who will configure and support Teams Phone.
How the migration will be tested before old services are cancelled.
Hidden Microsoft Teams Phone Costs Watch for costs that are not obvious from the base licence:
Teams licensing
Teams Phone licensing
calling plans or operator charges
Direct Routing infrastructure
SBCs
specialist implementation
number porting
desk phones
headsets
recording
contact-centre software
CRM integration
training
support
backup connectivity
Always compare the complete first-year and contract cost , not only the £7.70 Teams Phone licence.
Compare Complete Teams Phone Costs
Microsoft Teams Phone and the PSTN Switch-Off Openreach says the UK’s copper network and traditional phone lines are due to be retired by 31 January 2027 .
Businesses still using traditional lines should review digital alternatives before then. Teams Phone is one possible replacement, but it is not the only option.
You should also check whether other services still rely on analogue telephone connectivity, such as:
alarms
lift phones
door-entry systems
fax machines
payment terminals
Who Should Use Microsoft Teams Phone? Teams Phone is particularly worth comparing if your organisation:
already uses Microsoft 365
uses Teams daily
wants calls, meetings and collaboration in one application
has hybrid or remote employees
wants flexible PSTN carrier options
needs a cloud PBX replacement
Who Should Consider Hosted VoIP Instead? Hosted VoIP may be a better starting point if you:
do not already use Microsoft 365 extensively
want a simple standalone phone system
want one telecoms provider to manage the full service
need straightforward per-user pricing
have relatively simple call-handling requirements
Our Verdict: Is Microsoft Teams Phone Worth It? Microsoft Teams Phone is one of the strongest options for businesses already centred on Microsoft 365.
The key advantage is not necessarily cheaper calls. It is the ability to put external business calling inside the same Teams environment employees already use for meetings, chat and collaboration.
However, Teams Phone is not automatically the cheapest or simplest VoIP solution.
The right setup depends heavily on your PSTN route:
Calling Plans for simpler Microsoft-led deploymentsOperator Connect for managed carrier connectivityDirect Routing for complex or existing telecoms estatesTeams Phone Mobile for eligible mobile-centric users
If you only need straightforward business calling, hosted VoIP may be easier.
If you need advanced sales or contact-centre capabilities, a specialist platform may be a better fit.
Compare Microsoft Teams Phone Quotes
Free quotes • No obligation • Compare Teams Phone, Operator Connect, Direct Routing and hosted VoIP
Frequently Asked Questions How much is Microsoft Teams Phone in the UK?
Microsoft currently lists Teams Phone Standard at £7.70 per user/month excluding VAT, paid annually. Teams Phone with pay-as-you-go calling is £9.20 and the UK domestic-calling package is £13.10 per user/month.
Does Microsoft Teams Phone include calls?
Teams Phone Standard does not itself include a full PSTN calling service. External calling can be added through Microsoft Calling Plans, Operator Connect, Direct Routing or Teams Phone Mobile.
Does Teams Phone include a business number?
The number comes through the PSTN connectivity provider rather than simply from the Teams Phone Standard licence. Microsoft Calling Plans and participating operators can provide telephone numbers.
What is Operator Connect?
Operator Connect lets a Microsoft-certified telecoms operator provide and manage PSTN calling for Teams Phone without the business needing to operate its own SBC infrastructure.
What is Direct Routing?
Direct Routing connects Teams Phone to a chosen carrier or existing telephony infrastructure using a supported Session Border Controller.
What is Teams Phone Mobile?
Teams Phone Mobile connects a participating mobile operator with Teams Phone so an eligible business mobile number can work through both the native phone dialler and Teams.
Which is better: Calling Plans or Operator Connect?
Calling Plans are simpler where businesses want Microsoft to provide PSTN calling. Operator Connect can be more attractive where businesses want a telecoms operator to handle numbers, porting and PSTN service.
Which is better: Operator Connect or Direct Routing?
Operator Connect is generally simpler to manage. Direct Routing provides more control and is more suited to complex routing, existing carriers and PBX integration.
Is Microsoft Teams Phone a VoIP system?
Yes. Teams Phone is a cloud-based IP phone system that can make and receive external calls when connected to a PSTN service.
Can Teams Phone replace a PBX?
Yes, for many businesses. More complex organisations may still need Direct Routing or additional contact-centre and telephony tools.
Can I keep my existing phone numbers?
Usually, yes. Number porting depends on the Calling Plan, Operator Connect or Direct Routing provider handling the PSTN connection.
Is Microsoft Teams Phone good for small businesses?
It can be, particularly where the business already uses Microsoft 365 and Teams. Small businesses that mainly need straightforward calling may find hosted VoIP simpler.
Is Microsoft Teams Phone good for remote workers?
Yes. Teams Phone works through supported desktop and mobile clients, making it suitable for hybrid and remote working.
Can Microsoft Teams Phone run a call centre?
Teams Phone provides standard call queues and auto attendants, but advanced contact centres may need additional routing, workforce-management, reporting and quality-management tools.
Is Microsoft Teams Phone cheaper than hosted VoIP?
Not necessarily. The full Teams Phone cost can include Teams licences, Phone licences, PSTN calling, setup, support and hardware. Compare complete costs rather than licence prices alone.
Do I need a VoIP provider with Microsoft Teams Phone?
Not always. Microsoft Calling Plans use Microsoft as the PSTN provider. Operator Connect and Direct Routing use external telecoms operators or carriers.
Related Microsoft Teams & VoIP Guides Compare Microsoft Teams Phone Quotes
Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
