The default option for Microsoft 365 shops. A strong cost story when the licensing math works out, but with real limitations that pure UCaaS platforms don't have. Here's the honest take.
Teams Phone is genuinely compelling for knowledge-worker organizations already on Microsoft 365. One app, one bill, no retraining. But it's not a one-size-fits-all answer, and we see a lot of companies get oversold on it. If you have a sales team doing heavy call volume, complex IVR, skills-based routing, or a contact center, Teams Phone will fight you. For everyone else on M365, it deserves a serious look.
Teams Phone is an add-on to a Microsoft 365 base license. The total cost depends heavily on which M365 plan you're already on.
Calling plans (domestic minutes) are a separate line item, typically $12–15/user/mo, or you can use Operator Connect via a carrier partner, which often delivers better rates and flexibility.
Don’t pay list price. Microsoft license pricing is fixed, but the calling side is not. Quoting Operator Connect through us typically lands 30%+ below Microsoft Calling Plan list rates.
We'll run the licensing math and compare Teams Phone to the 2–3 UCaaS alternatives that fit your use case, at wholesale rates, with a straight recommendation.
Teams Phone licensing starts at $8/user/month as an add-on to Microsoft 365 E3, or is included in E5 licenses. Calling Plans add $12-$24/month per user, or you can use a third-party Direct Routing provider for lower per-minute costs.
Yes, unless you add Teams Phone. Standard Microsoft Teams only includes chat and video meetings. To make and receive external phone calls, you need a Teams Phone license plus a calling plan or Direct Routing provider.
Calling Plans are Microsoft's built-in PSTN service, simple but limited in routing flexibility. Direct Routing lets you connect your own SBC and carrier, giving more control over call flows, cost, and number management.