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Quick answer: Teams Phone makes sense when Teams is already your main app and you want voice in the same window. Hosted VoIP wins when you need rich call-centre features, support agents who never use Teams, or hardware desk handsets. Costs end-to-end: Teams Phone £14–£25/user/mo (licence + calling), hosted VoIP £9–£25/user/mo (depending on tier). Three Teams Phone delivery models — Calling Plans, Operator Connect and Direct Routing — explained below, plus a side-by-side feature table to help you choose.
The three ways to get Teams Phone PSTN connectivity
| Model | Who provides PSTN? | Cost / user / mo | Setup time |
|---|---|---|---|
| Microsoft Calling Plans | Microsoft | £8 (UK), £20 (UK + International) | 15 minutes — port arrives in 10 days |
| Operator Connect | Approved carrier (BT, Gamma, others) — fully integrated UI | £4–£12 + per-minute | 1–2 days |
| Direct Routing | Any SIP carrier via SBC (most flexible / cheapest) | £2–£8 + per-minute | 1–4 weeks (SBC config) |
Side-by-side feature comparison
| Feature | Teams Phone | Hosted VoIP (RingCentral / 8×8 / hypercloud) |
|---|---|---|
| Embedded in Microsoft Teams | Yes — same window | Separate app + Teams integration via add-in |
| Mobile app | Yes (Teams app on iOS/Android) | Yes (provider app) |
| Desk phones | Yes (Teams-certified Yealink/Poly) | Yes (any SIP handset) |
| Call queues | Basic — included | Advanced — wallboards, skills routing |
| Auto-attendant / IVR | Multi-level, language-aware | Multi-level, more visual builders |
| Call recording | Compliance recording add-on (£5+/user) | Usually included on Pro tier |
| CRM dialler integration | Limited — Dynamics, Salesforce via add-ons | Strong — HubSpot, Salesforce, Pipedrive, Zoho |
| Contact-centre features | Basic without Dynamics 365 Contact Center | Full omnichannel optional |
| Number porting | Yes — 10 working days standard | Yes — 10 working days standard |
| SIP trunk for legacy PBX | Via Direct Routing only | Native SIP trunks available |
When Teams Phone wins
Choose Teams Phone if…
Teams is already core to how you work and voice is a small part of most users’ day.
Best fit:
- Knowledge workers (consulting, professional services)
- Hybrid offices using Teams for chat already
- Existing M365 E5 / Business Premium licences
- Call volumes < 30 calls/user/day
- Need calling embedded in collaboration UI
Choose hosted VoIP if…
Voice is central — sales, support, claims, reception, retail.
Best fit:
- Sales teams making 50+ calls/day
- Customer support with queues
- Reception/dispatch needing handsets
- Field staff without Teams licence
- CRM-driven dialling
Switch to a smarter phone system
Hosted VoIP from £12/user/month. Free setup, number porting and UK support. Get a quote in 60 seconds.
Or call us on 0333 015 2615
Real-world cost examples
Teams Phone — Calling Plan
£14/user/mo
Teams Phone Standard licence £6 + UK Domestic Calling Plan £8. All in.
- Easiest setup
- Microsoft handles PSTN
- Single Microsoft bill
- Per-min rates above bundled mins
- Call recording extra
Teams Phone — Direct Routing
£8/user/mo
Teams Phone licence £6 + Gamma/hypercloud SIP £2 + 1p/min UK landline rate.
- Cheapest at high volume
- Keep existing carrier
- Better international rates
- SBC required (managed service)
- Call recording cheaper
Hosted VoIP — Pro tier
£18/user/mo
Full features: queues, IVR, recording, CRM integration, mobile + desktop apps.
- Call queues + reporting
- Recording included
- CRM integrations
- Unlimited UK calls
- Includes desk handset rental
Migration tips for either path
Audit current usage
Pull 6 months of call detail records — total minutes, busy hour, top destinations. Pricing without this is guesswork.
Plan number porting early
10 working days minimum. Sign PAFs at the same time as ordering licences.
Pilot with 5–10 users first
Two weeks of pilot before company-wide rollout. Solves the surprise issues without exposing the whole team.
Train first-line
Reception and support staff need 30 minutes of UI training. Don’t skip — bad first impressions kill adoption.
Choosing between Teams Phone and hosted VoIP?
We design and deliver both. 30-minute consultation, side-by-side cost model based on your actual call volumes. No upsell.
Teams Phone vs Hosted VoIP — FAQs
Yes — common pattern: knowledge workers on Teams Phone, sales and support on a hosted VoIP platform. Both can share the same DDI ranges if you architect it carefully.
No — Teams Phone Standard is a £6/user add-on to most Business and Enterprise plans. E5 includes it; lower tiers buy it as an add-on.
Only if they’re Teams-certified (newer Yealink, Poly Edge, AudioCodes). Standard SIP handsets won’t register to Teams without an SBC trick — usually not worth it.
A middle ground — your chosen carrier (BT, Gamma, others) is approved by Microsoft to plug straight into Teams without you running an SBC. Cheaper than Calling Plans, simpler than Direct Routing.
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