Microsoft Teams Phone for Small Business: 8 Questions

If your team already lives in Microsoft Teams all day, turning it into your actual phone system is a reasonable move, but the licensing and calling options confuse almost everyone the first time. Here are the questions small business owners ask most often before making the switch.

By Latoya Reed. The NetSys Group has delivered managed IT, cybersecurity, and cloud services since 1998. Our engineers hold degrees in electrical and computer engineering and are certified Microsoft and Cisco instructors, serving businesses across NY, NJ, CT, PA, and Southwest Florida.

Teams Phone licensing and pricing

Teams Phone is two purchases: the phone system license, and a way to reach outside phone numbers. Every option also needs a Microsoft 365 plan or Teams license underneath. Here is how the pieces fit, with Microsoft's list prices per user per month, paid yearly on an annual commitment.

License or option	What it is	Microsoft list price, as of October 2026
Teams Phone Standard	The phone system: cloud voicemail, call forwarding and transfer, auto attendants, call queues and caller ID. It doesn't connect to outside numbers by itself. Included in Microsoft 365 E5	$10.00
Teams Phone with Calling Plan (US)	Teams Phone Standard plus a Microsoft domestic Calling Plan: a phone number and 3,000 outbound domestic minutes a month. The calling portion includes 911 fees and communication taxes	$17.00
Calling Plans	Microsoft as your phone carrier, as Domestic, International or Pay-As-You-Go plans, bought in a bundle with Teams Phone or added to Teams Phone Standard. Incoming minutes are unlimited, and users on the same plan in the same country share one pool of outbound minutes	Teams Phone with pay-as-you-go calling: $13.00 plus per-minute charges. Teams Phone with domestic and international calling: $34.00
Operator Connect	A Microsoft-certified carrier supplies the numbers and calling, and you manage users in the Teams admin center	Teams Phone Standard ($10.00) plus the carrier's price
Direct Routing	Connects any carrier, or an existing phone system, through a certified Session Border Controller that you, your IT provider or a hosted service runs	Teams Phone Standard ($10.00) plus carrier and Session Border Controller costs
Teams Phone Resource Account license	Needed for every auto attendant and call queue. It needs a Calling Plan only if it has to dial out	No cost
Teams Phone Mobile	A participating mobile carrier makes an employee's company cell number their Teams number too. It covers user numbers only, not auto attendants or call queues	Teams Phone Standard ($10.00) plus the carrier's mobile plan

Prices from Microsoft's Teams pricing page; licensing details from Microsoft Learn on PSTN connectivity options, Calling Plans and resource account licenses. All checked October 7, 2026. In the US, sales tax on the phone system portion shows up as a separate charge.

For most small offices the realistic choice is Teams Phone with Calling Plan, or Operator Connect through a carrier you already use. Direct Routing makes sense when you have phone equipment or a carrier contract you need to keep. Desk phones and setup are separate costs either way.

Microsoft Teams Phone: common setup and licensing questions

What is Microsoft Teams Phone, exactly?

Teams Phone turns Microsoft Teams into a full business phone system: real phone numbers, calls to and from outside lines, voicemail, auto attendants, and call queues, all inside the app your staff already use. Calls work on their computer, the Teams mobile app, or a desk phone. It replaces a separate VoIP system rather than sitting alongside one.

Is Teams Phone included in Microsoft 365?

No, not in the common small-business plans. Standard Microsoft 365 gives you Teams for chat and meetings, but making external phone calls requires the Teams Phone add-on plus a calling plan. It's a separate license on top of your existing subscription, so budget for it as an addition, not something you already own.

How much does Teams Phone cost per user?

At Microsoft's list prices as of October 2026, Teams Phone Standard is $10.00 per user per month, and Teams Phone with Calling Plan for a US user, which adds a phone number and 3,000 outbound domestic minutes a month, is $17.00, both paid yearly. That sits on top of the Microsoft 365 plan you already pay for, and desk phones and setup are extra. Compare that to your current provider on total cost, not the sticker price. The licensing table above lists every option.

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

These are the three ways to connect Teams to the outside phone network. Calling Plans buy minutes directly from Microsoft, the simplest option. Operator Connect uses a partner carrier through a built-in Teams menu. Direct Routing connects your own carrier but needs extra equipment. For most small businesses, Calling Plans or Operator Connect are the practical choices. Teams Phone Mobile is a fourth option for staff who work from their cell phones; the licensing table above compares all four.

Can we keep our existing phone numbers?

Yes. Business phone numbers can be ported into Teams Phone from almost any provider, so you keep your main line and direct-dial numbers. Porting takes some coordination and shouldn't be rushed, plan the cutover for a low-traffic window and keep the old service active until the port completes and testing passes.

Do we still need desk phones?

Only if you want them. Many teams run entirely on headsets and the Teams app on computers and phones. Desk phones still make sense for reception, warehouses, common areas, or staff who prefer a handset. If you do buy them, choose models certified for Teams so features and firmware are supported.

What about 911 and emergency calling?

Emergency calling has to be configured deliberately in Teams Phone, including dynamic location so a 911 call routes to the right dispatcher and shows the correct address. This is easy to overlook and legally important. It's one of the main reasons to have Teams Phone set up by someone who does it regularly rather than turning it on yourself.

Is Teams Phone right for every small business?

Not always. It's a strong fit if you're already standardized on Microsoft 365 and Teams. If you rely on a standalone VoIP system with call-center features, or you're not committed to Microsoft's ecosystem, a dedicated provider may serve you better. Our VoIP phone system FAQ covers how to compare the alternatives.

Not sure which calling option fits your team?

Teams Phone can save money and simplify your stack, or it can turn into a licensing tangle, depending on how it's set up. We manage Microsoft 365 and Teams voice for businesses across the tri-state area and Southwest Florida. See our Microsoft 365 management services or contact The NetSys Group for a complimentary consultation and we'll help you pick the right calling model and plan the switch.

If you are moving your calls to Teams, our Microsoft Teams Phone setup and support covers licensing, carrier selection, call routing and number transfer.