If your business already uses Microsoft 365, you may be able to retire the old phone system and make and receive normal phone calls through Microsoft Teams. Staff can answer the office number on a laptop, mobile app or desk phone, from the office or from home, and calls sit in the same place as chats and meetings.
The catch is that Teams calling isn’t switched on by default. You need the right licences, a way to connect Teams to the public phone network, and a plan for your existing numbers. This guide walks through each step in plain English so you can decide whether it suits your business.
What Teams calling actually is
Out of the box, Teams lets people call each other inside your organisation over the internet. To call customers, suppliers and mobiles, and to have customers ring your business number, you need the feature Microsoft calls Teams Phone.
Once it’s set up, Teams can handle most of what a traditional office phone system does:
- A direct number for each staff member, plus a main business number
- Auto attendants (“Press 1 for sales, 2 for accounts”)
- Call queues so incoming calls ring a group of people
- Voicemail, call transfer, hold and forwarding to mobiles
- Business hours and after-hours rules, including public holidays
This is what people mean by unified communications: calls, chat, video meetings and file sharing in one tool instead of four.
Is Teams calling a good fit for your business?
It tends to work well when:
- Your team already lives in Microsoft 365 and Teams every day
- Staff work a mix of office and home, or move between sites
- Your current phone system is ageing, out of support or tied to an old contract
- You’re planning an office move and don’t want to rewire for desk phones
It may need more thought if you run a busy call centre with detailed reporting needs, rely on a specialised system that integrates with industry software, or have an unreliable internet connection. In those cases a dedicated cloud phone platform might suit better, and that’s fine. The right answer depends on how your business takes calls.
The three things you need to sort out
1. Licences
Each person who will make or receive external calls needs a Teams Phone licence. Some higher-tier Microsoft 365 plans include it; most small business plans (including Business Basic, Standard and Premium) need it added on. Shared resources like auto attendants and call queues use their own resource account licences. Microsoft’s licensing changes from time to time, so check current options before you budget.
2. A connection to the phone network
Teams needs a path to the outside world. There are generally three ways to do it:
- Microsoft Calling Plans, where Microsoft supplies the numbers and call service directly (availability and inclusions vary by country).
- Operator Connect, where a participating telco provides the numbers and calls, and links them to your Teams tenant through a managed connection.
- Direct Routing, where a provider connects your own phone service to Teams using a session border controller. This is the most flexible option but needs more technical setup.
For many Australian small businesses, a telco offering Operator Connect is the simplest middle ground, but compare call rates, support and contract terms rather than assuming one option is best.
3. Your existing phone numbers
Most businesses want to keep their main number, and in many cases you can port it across. Porting is handled between the old and new providers and can take time, so start early. Gather your account details, a list of every number you hold (including fax lines and numbers you’ve forgotten about), and check whether your current contract has exit fees.
Don't skip these practical details
Emergency calls
Being able to call emergency services reliably is non-negotiable. With internet-based calling, the service needs to know where the caller is. Ask your provider how emergency calls and location information work with their Teams service, and set up your office addresses correctly in Teams.
Internet quality
Calls are only as good as your connection. Choppy audio usually comes from a congested or unreliable link, poor Wi-Fi or a network that isn’t prioritising voice traffic. Have your network checked before go-live, and consider a backup connection if phones are critical to your business. It’s worth including phones in your business continuity plan so calls can be redirected to mobiles if the office goes offline.
Devices
Decide who needs what. Many staff are happy with a good headset and the Teams app. Reception, warehouse or shared areas often work better with Teams-certified desk phones or common-area phones. Budget for headsets: cheap ones are the fastest way to make a great system sound terrible.
Security
Your phone system now lives inside your Microsoft 365 account, so protecting that account protects your phones. Make sure multi-factor authentication is on for everyone and that admin access is limited to the people who genuinely need it.
A simple step-by-step plan
- Map how calls work today. Who answers the main line? What happens after hours? Where do missed calls go?
- List every number and contract. Include mobiles, fax lines and any 1300 or 1800 numbers.
- Choose your connection option and provider. Confirm porting, emergency calling and support arrangements.
- Check your network and order devices.
- Build the call flows in Teams. Set up auto attendants, queues, hours and voicemail before porting.
- Pilot with a small group. Iron out the kinks before the whole office relies on it.
- Port numbers and go live. Pick a quieter day, not the end of the financial year.
- Train staff. A short session on answering, transferring and parking calls saves a lot of frustration.
Common mistakes to avoid
- Cancelling the old phone service before numbers have finished porting
- Forgetting to set up after-hours and public holiday rules
- Leaving voicemail going to someone who has left the business
- Assuming home internet will cope without testing it
- Rolling it out with no training and hoping for the best
None of these are disasters, but each one can mean missed calls from customers, which is the one thing a phone system must never do. Even monsters answer the phone on the second ring.
Getting help with the switch
Moving to Teams calling is very achievable for a small business, but it touches licensing, telcos, networking and staff habits all at once. If you’d like someone to look at your current setup and recommend the right approach, our IT consulting team can help you plan it, and our business IT support service can look after it once it’s running. If you’re also moving premises, we can fold it into your office relocation.
Ready to talk about your phones? Contact Monster IT or call us on +61 405 808 707 and we’ll help you work out whether Teams is the right fit.
Frequently asked questions
Can I keep my existing business phone number if I move to Teams?
In many cases, yes. Your number can usually be ported from your current provider to the provider connecting your Teams phone service. Porting takes time, so start early and don't cancel your old service until the port is complete.
Do I need desk phones to use Teams calling?
No. Staff can make and take calls in the Teams app on a computer or mobile using a good headset. Teams-certified desk phones are useful for reception, shared areas or staff who prefer a handset.
Is Teams Phone included in Microsoft 365 Business Premium?
Generally not. Most small business Microsoft 365 plans need a Teams Phone licence added for each user who makes external calls, plus a connection to the phone network. Check Microsoft's current licensing before budgeting, as it changes from time to time.
What happens to our phones if the internet goes down?
Teams calls need an internet connection, so an outage at the office affects desk-based calling. You can reduce the impact with a backup internet connection, the Teams mobile app on staff phones, and call forwarding rules set up in advance.