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Microsoft Teams Phone Β· Microsoft Cloud Solution Provider

Replace your PBX with the phone your team already uses.
Three deployment models. One Microsoft 365 SSO. Pick the right one.

Microsoft Teams Phone replaces your PBX with cloud calling native to the Teams client your team already opens every morning. Three deployment models: Microsoft Calling Plans (the simplest), Operator Connect (the most flexible β€” bring your own carrier from 100+ certified partners), or Direct Routing (the most powerful β€” bring your own SBC). The right model depends on your size, your existing carrier relationships, and your routing complexity.

The three deployment models

Pick the model that matches your scale, your carriers, and your routing complexity.

Most SMB and mid-market deployments land on Calling Plans (simplest) or Operator Connect (most flexible). Direct Routing is the right answer for large enterprises with complex telephony and for MSP-operated deployments where the MSP runs the SBC infrastructure. Below is the high-level comparison β€” the deep dive lives at /teams-phone/deployment.

Calling Plans

Microsoft sells you the phone numbers, the SIP trunks, and the PSTN connectivity. The simplest model.

Pricing: $10/user/mo Teams Phone Standard + $7/user/mo Domestic Calling Plan = $17/user/mo all-in (US + Canada). International Calling Plan is $24/user/mo separately. Available in 30+ countries.
  • Single bill from Microsoft
  • Fastest deployment β€” numbers + connectivity provisioned in minutes via Teams admin center
  • No SBC infrastructure to manage
  • Auto-included number porting (LNP support)

When it wins: Best for SMBs and mid-market in supported countries (US, Canada, UK, Australia, most of EU). The default if you want one-throat-to-choke and have no existing telco relationship to preserve.

Operator Connect

You bring your own carrier from a Microsoft-certified Operator Connect program partner. Microsoft handles the integration; the carrier owns the PSTN.

Pricing: $10/user/mo Teams Phone Standard + carrier pricing (varies β€” typically $5-$15/user/mo for unlimited domestic). Total $15-$25/user/mo all-in.
  • Choice of 100+ certified carriers globally
  • Preserves existing carrier relationship + pricing
  • Carrier handles E911 + regulatory compliance per their jurisdiction
  • Number management via Teams admin center (carrier provisions in their portal)

When it wins: Best for mid-market and enterprise that want carrier choice. The most common model for Canadian deployments (Bell, Telus, Rogers all offer Operator Connect). For multi-country deployments, Operator Connect lets you mix-and-match carriers per region.

Direct Routing

You bring your own SBC + carrier. Maximum control. Maximum complexity.

Pricing: $10/user/mo Teams Phone Standard + SBC infrastructure (CapEx or vSBC subscription) + carrier SIP trunk pricing. Total varies widely β€” $12-$30/user/mo all-in.
  • Maximum carrier flexibility β€” any SIP trunk provider
  • Best for organizations with existing PBX infrastructure (Avaya, Cisco, Mitel, NEC) being phased out
  • Multi-region deployments with regional SIP trunks
  • Custom call flows via SBC scripting

When it wins: Best for large enterprises with complex telephony (multi-region, custom routing, integrations with contact center or on-prem PBX), and for managed-service-provider deployments where the MSP runs the SBC infrastructure for the customer. Most mid-market organizations should NOT pick Direct Routing unless they have specific requirements that Calling Plans / Operator Connect cannot meet.

The cross-vendor landscape

Teams Phone competes with five major UCaaS platforms in 2026.

Microsoft Teams Phone

Bundled in E5; $10/user/mo standalone + $7-$24 PSTN.

When it wins: M365-resident organizations, especially those on E5. Native Teams integration, no separate softphone, single SSO surface, one license bill.

RingCentral RingEX

$30-$45/user/mo for full UCaaS (calling + meetings + messaging).

When it wins: Mature standalone UCaaS for non-Microsoft shops or organizations wanting deeper telecom-native features. Strong contact center integration via RingCX.

Zoom Phone

$10-$20/user/mo for Zoom Phone, on top of Zoom Meetings licensing.

When it wins: Zoom-resident organizations. The natural extension of Zoom Meetings into PSTN. Strong global PSTN coverage.

8x8 Work

$24-$57/user/mo across X1/X2/X4 tiers.

When it wins: Mid-market organizations wanting CCaaS + UCaaS in one platform with strong international PSTN. The "X Series" platform unifies voice, video, chat, and contact center.

Cisco Webex Calling

$12-$30/user/mo depending on bundle.

When it wins: Cisco-resident organizations or those with significant Cisco PBX investments being modernized. Strong contact center integration via Webex Contact Center.

Dialpad

$15-$25/user/mo across Standard/Pro/Enterprise tiers.

When it wins: AI-forward deployments β€” Dialpad pioneered AI features (Vi voice intelligence, real-time transcription, sentiment analysis). Smaller footprint than the others but punches above its weight on AI.

FAQ

Teams Phone questions, answered.

How much does Microsoft Teams Phone cost in 2026?

Three pricing components depending on deployment model. (1) Teams Phone Standard: $10/user/mo standalone, OR included in Microsoft 365 E5. (2) PSTN connectivity: Microsoft Calling Plan adds $7/user/mo for unlimited US/Canada domestic ($17/user/mo all-in), or $24/user/mo for international. Operator Connect carrier pricing is typically $5-$15/user/mo. Direct Routing carriers vary widely. (3) Optional add-ons: Teams Phone Mobile is $20-$30/user/mo bundled with carrier mobile service. Teams Premium for advanced calling features is $10/user/mo. The most common mid-market deployment lands at $17-$25/user/mo all-in.

What is the difference between Calling Plans, Operator Connect, and Direct Routing?

Three deployment models, three trade-offs. CALLING PLANS β€” Microsoft sells you the phone numbers and PSTN connectivity. Simplest, fastest, single-vendor. Best for SMB and mid-market in supported countries. OPERATOR CONNECT β€” you pick a carrier from Microsoft's 100+ certified Operator Connect partners. Microsoft handles the technical integration; the carrier owns the PSTN. Best for organizations wanting carrier choice, especially in Canada (Bell, Telus, Rogers all offer it). DIRECT ROUTING β€” you bring your own SBC and SIP trunk carrier. Maximum flexibility, maximum complexity. Best for large enterprises with complex routing or MSP-operated deployments.

Which Operator Connect carriers are available in Canada?

The major Canadian Operator Connect partners as of May 2026: Bell Canada, Telus, Rogers, BCE, AT&T (cross-border), Lumen, Verizon Business (cross-border), Tata Communications, Voyced, NTT Limited, Pure IP, BT (international service), and several specialty providers. Most Canadian mid-market deployments land on Bell or Telus for domestic + Lumen or AT&T for cross-border US connectivity. We help select the carrier based on existing relationships, in-country number pooling, E911 jurisdictional coverage, and pricing.

What SBCs are certified for Microsoft Teams Direct Routing?

Microsoft maintains a binding certified vendor list. The major certified SBC vendors as of 2026: AudioCodes (Mediant series), Ribbon Communications (formerly Sonus, SBC 1000/2000/5000/Edge series), Oracle (E-SBC), Sangoma (Vega + SBC family), TE-SYSTEMS (anynode), Cisco (CUBE), Yeastar (P-Series), and several others. Non-certified SBCs do NOT work β€” Microsoft's certification process verifies SIP interop, media handling, security posture, and feature parity. AudioCodes Mediant is the most common choice for mid-market; Ribbon SBC 5000 dominates large enterprise.

How does Teams Phone Mobile work and which carriers offer it?

Teams Phone Mobile combines a user's mobile carrier line with Teams Phone β€” calls to/from the mobile number ring in Teams (and on the mobile device), SMS appears in Teams, contacts sync. The mobile carrier becomes the PSTN provider for that user, billed alongside Teams Phone. Carriers as of May 2026: Verizon (US), Rogers (Canada), BT (UK), Telstra (Australia), Swisscom (Switzerland), and a growing list. Pricing typically $20-$30/user/mo total (Teams Phone Mobile license + carrier mobile service). Best for field staff, sales teams, and executives who use mobile as their primary work line.

How does E911 work with Teams Phone?

E911 (Enhanced 911) compliance varies by deployment model. For Calling Plans, Microsoft handles E911 β€” emergency calls route based on the user's registered emergency address. For Operator Connect, the carrier handles E911 in their jurisdiction. For Direct Routing, E911 is YOUR responsibility β€” typically handled via integration with an emergency routing service like Intrado, RedSky, or Bandwidth Dynamic Location Routing. The 2024 Kari's Law and RAY BAUM's Act updates require dispatchable location (room-level address) for office deployments β€” most modern Teams Phone configurations use Wi-Fi BSSID, switch port, or subnet-based location detection to satisfy this.

Should we use Teams Phone or RingCentral / Zoom Phone / 8x8 / Webex Calling / Dialpad?

For M365-resident organizations on E3 or E5: Teams Phone is the natural choice β€” it's included in E5, native to the Teams client your team is already using, and consolidates licensing. For organizations heavy on a non-Microsoft platform (Zoom Meetings shop β†’ Zoom Phone; Cisco Webex shop β†’ Webex Calling; Google Workspace shop β†’ various), the platform-native option is usually the right call. For organizations needing deep contact center integration with the same vendor as the UCaaS platform, 8x8 X-Series or RingCentral RingCX have stronger CCaaS integration than Teams Phone's native Auto Attendant + Call Queue. We do this comparison explicitly in the deployment scoping.

Teams Phone is included in E5. Most organizations on E5 do not use it.

If you are on Microsoft 365 E5, Teams Phone is already included in your license. Activating it requires picking a deployment model, sourcing PSTN connectivity, porting numbers, designing Auto Attendants and Call Queues, and configuring E911 to satisfy Kari's Law and RAY BAUM's Act. The free 90-minute IT health check includes a Teams Phone activation roadmap if you are paying for it but not using it.