The question every Microsoft shop asks. One is a complete phone system, the other is a calling add-on inside an app you already own. The right answer depends on what your phones actually do all day.
If your company lives in Teams and your calling needs are simple, Teams Phone keeps everything in one app at a low add-on cost. The moment you need real call queues, IVR depth, SMS, or telecom-grade support, RingCentral is the stronger phone system, and it still embeds inside Teams.
Published list prices. The Teams Phone math depends heavily on which Microsoft 365 licenses you already own.
| Tier | RingCentral | Teams Phone |
|---|---|---|
| Entry | $20/user/mo (Core) | $10/user/mo add-on (requires M365) |
| Mid tier | $25/user/mo (Advanced) | $46/user/mo (E3 + Teams Phone) |
| Top tier | $35/user/mo (Ultra) | $57/user/mo (E5, Phone included) |
| PSTN calling | Unlimited US/Canada included | Calling plan or Operator Connect extra |
The $10 add-on headline is misleading on its own. Add a Microsoft Calling Plan and you are at $18 to $25 per user before you have a single call queue. Operator Connect through us typically lands 30%+ below Microsoft Calling Plan list rates.
| Area | RingCentral | Teams Phone |
|---|---|---|
| PBX depth | Full enterprise feature set | Covers the basics; gaps appear fast |
| Call queues & IVR | Deep, multi-level, easy to manage | Basic auto attendant and queues |
| Teams integration | Embedded app inside Teams | It IS Teams; nothing more native |
| Business SMS | Included | No native SMS |
| Contact center | Native CCaaS available | Requires a third-party CCaaS bolt-on |
| Analytics | Granular call analytics on Advanced+ | Light; spread across M365 admin tools |
| Admin experience | One portal for everything voice | Split across Teams admin, M365, and PowerShell |
| Desk phones | Broad SIP hardware support | Teams-certified devices only |
| Support | Telecom-grade support and porting help | General Microsoft support channels |
| Uptime SLA | 99.999% | 99.99% |
For Teams-centric organizations with simple calling, Teams Phone plus Operator Connect is a clean, cost-effective setup. For any company where the phone drives revenue or support, the feature gaps show up within months, and RingCentral (which still embeds in Teams) is the safer choice.
Phones matter to your business: sales, support, multiple locations, or anything beyond basic dial tone.
You live in Teams, calling needs are simple, and you already own E5 or are comfortable adding calling plans.
Still not sure? Tell us about your setup, we'll tell you which one (or a third option you haven't considered) actually fits.
Get a personalized recommendationWe'll quote both RingCentral and Teams Phone (plus any other relevant options) at wholesale rates and tell you which fits your team's actual setup.