What Is Microsoft Teams Calling?
Microsoft Teams Calling is the ability to make and receive phone calls to and from ordinary phone numbers — mobiles, landlines and international numbers — directly inside the Microsoft Teams app. It turns Teams from a chat and video tool into a full business phone system, so your team can call anyone outside the organisation without switching to a separate phone or app.
Most businesses already use Teams for meetings and messaging. Teams Calling adds the one thing that's usually missing: proper phone calls to numbers outside your organisation.
How Does Microsoft Teams Calling Work?
Calling between people inside your organisation is already included in Teams. To call or receive calls from outside numbers, you need two extra things: a Teams Phone licence and a connection to the phone network, known as PSTN connectivity.
Once that's set up, each user gets a business number that rings on their desktop, laptop and mobile at the same time. Calls follow the person, not a desk, so someone can take a call on their phone, then carry on the same conversation from their computer without hanging up.
What Do You Need to Set It Up?
To make and receive external calls in Teams, you'll need:
- A Microsoft 365 subscription that includes Teams (most business plans do)
- A Teams Phone licence for each user who needs to make external calls
- A way of connecting to the phone network — either a Microsoft Calling Plan, Operator Connect, or Direct Routing (more on these below)
- Reliable business broadband, since Teams calls run over your internet connection
- A device with Teams installed — you don't need a desk phone, though Teams-certified handsets are available if your team wants one
Calling Plans, Operator Connect or Direct Routing?
This is the decision that trips most businesses up, because Microsoft offers three different ways to connect Teams to the phone network, and they're not interchangeable.
| Option | How it works | Best suited to |
|---|---|---|
| Microsoft Calling Plan | Microsoft is your carrier. You buy minutes bundles directly from Microsoft alongside your Teams Phone licence. | Small teams wanting the simplest setup, with predictable, lower call volumes |
| Operator Connect | A telecoms provider supplies and manages the PSTN connection on Microsoft's approved network, without you needing your own hardware. | Businesses that want a provider to manage calling for them, without the cost of Microsoft's own plans |
| Direct Routing | Your own SIP trunk provider connects to Teams via a certified session border controller. | Businesses with existing telecoms contracts, higher call volumes, or more complex routing needs |
Calling Plans are the easiest to set up but usually the most expensive per user. Direct Routing takes more work to configure but generally works out cheaper at scale and gives you far more control over routing, number ranges and call reporting. Operator Connect sits in between, and is often the sensible middle ground for growing businesses.
Whichever route you take, Microsoft's own Teams Phone documentation is worth reading before you commit, since licensing terms do change.
How Much Does Microsoft Teams Calling Cost?
Expect to pay a Teams Phone licence on top of your existing Microsoft 365 subscription, plus a separate cost for the calling capability itself. Calling Plans tend to sit at the higher end, since Microsoft bundles a fixed number of minutes into the price. Operator Connect and Direct Routing are usually cheaper per user, particularly if you already have a SIP trunk contract in place, but the setup takes more planning.
The honest answer is that the total cost depends heavily on how many users need calling, how many minutes they use, and whether you're calling mostly UK numbers or making regular international calls. It's worth getting the sizing right before you commit, since switching connectivity method later isn't a five-minute job.
Is Microsoft Teams Calling Right for Your Business?
If your team already lives in Teams for meetings and chat, adding calling can make sense — everything sits in one app, and there's nothing extra to log into. It particularly suits businesses with remote or hybrid teams, since a user's number follows them across every device.
It's not automatically the right choice for everyone. Businesses with high call volumes, contact centre-style queues, or a need for detailed call reporting sometimes find a dedicated hosted phone system, such as Gamma Horizon or 3CX, a better fit — either on its own or integrated alongside Teams. Our Gamma Horizon review and 3CX review cover both in more depth if you'd like to compare properly rather than defaulting to whichever platform you already pay for.
Frequently Asked Questions
Is Microsoft Teams Calling the same as Teams Phone? Not quite. Teams Phone is the licence that unlocks calling features. Teams Calling is what you get once that licence is combined with a PSTN connection, whether that's a Calling Plan, Operator Connect or Direct Routing.
Do I need a desk phone to use Teams Calling? No. Teams Calling works from a laptop, desktop, tablet or mobile with Teams installed. A physical handset is optional, not required.
Can I keep my existing business number? Yes. Existing UK numbers can usually be ported into Teams Calling, though timescales and options vary depending on which connectivity route you choose.
Do 999 calls work the same way on Teams Calling? Emergency calling on any VoIP-based system, including Teams, has to meet Ofcom's rules on location information, so it's worth confirming this has been configured correctly during setup rather than assuming it works exactly like a landline.
Is Teams Calling relevant to the PSTN switch-off? Yes. If you're still on traditional analogue or ISDN lines, you'll need to move to a digital solution regardless — Teams Calling is one option among several. Use our PSTN switch-off checker to see how much time you've got.
Not sure whether Microsoft Teams Calling suits your business, or whether a dedicated phone system would work better? Request a quote for independent advice, or use our phone system finder to see how Teams stacks up against the alternatives. You can also see how it compares on our best business phone systems page.
