Transforming Business Telephony with Microsoft Teams
Adding enterprise telephony to Microsoft Teams has become an attractive solution for businesses of all sizes. Many companies are now upgrading their telecom infrastructure to build a seamless, unified communications (UC) system with Microsoft Phone System.
Why choose Teams for telephony?
Unified user experience – Calls, meetings, and collaboration in one platform.
Cost savings – Eliminate on-premise PBX hardware.
Increased productivity – Faster workflows & better communication.
Enhanced customer service – Streamlined call management.
But how exactly does Microsoft Phone System work?
Keep reading to discover everything you need to know about implementing cloud-based telephony in Microsoft Teams. 👀
What Is Microsoft Phone System?
Traditional enterprise telephony relies on PBX systems to route calls to the Public Switched Telephone Network (PSTN).
Microsoft Phone System operates similarly but in the cloud—it’s a virtual PBX hosted by Microsoft, allowing Teams users to make and receive calls from external numbers.
Technical Definition
Microsoft Phone System is the technology that enables call control and PBX features in Microsoft 365. It works with Microsoft Teams clients & certified devices (requires an MS Teams license for VoIP calling).
How Does Microsoft Phone System Work?
Microsoft Phone System enables users to make and receive internal & external calls using:
Mobile Devices Desktop Computers IP Phones Compatible with Teams & Skype for Business
Internal Calls (within the same company)
Routed internally within Phone System, bypassing PSTN.
Zero long-distance charges for internal communications.
External Calls (outside the organization)
Require PSTN connectivity via one of three options:
Direct Routing
Microsoft Calling Plans
Operator Connect
Key Benefits of Microsoft Phone System
All Your Calls in One Platform
Clients, colleagues, and partners in a single place—call directly from Microsoft Teams without extra tools.
Seamless Call Transfer & Distribution
Transfer calls to colleagues, external contacts, or voicemail effortlessly.
Make Calls Faster than Ever
Use Click-to-Call to dial by name or number instantly.
Access call history and quickly return missed calls.
Call Queues for Better Management
Set up custom call routing, hold music, and automated greetings.
Automatically connect callers to the next available agent.
Advanced IVR for a Personalized Experience
Build interactive voice response (IVR) menus for better call handling.
Call Forwarding for Anywhere Access
Set call forwarding rules to redirect calls to colleagues or voicemail.
Take & Receive Calls from Any Location
Route calls based on caller ID or destination number.
Access Voicemail Anytime
Listen to voicemail messages in Teams or Microsoft Exchange inbox.
Control When You Receive Calls
Set your availability status and configure automatic replies.
Communicate from Any Device
Switch between mobile, desktop, or certified IP phones seamlessly.
How to Set Up Microsoft Phone System
Companies have three options to connect Microsoft Phone System to the PSTN:
Direct Routing (Best for Large Enterprises)
Calls are routed via a third-party telecom provider using their network.
Offers flexible pricing & tailored solutions.
Ideal for businesses needing global coverage & custom call packages.
Learn more about Direct Routing here.
Microsoft Calling Plans (Best for Small Businesses)
Microsoft acts as the sole carrier for PSTN calls.
Users pay a fixed monthly fee for a predefined calling package.
Limited to specific countries & less flexible than Direct Routing.
Operator Connect (Best for Hybrid Solutions)
A telecom provider integrates directly with Microsoft Teams.
Offers Microsoft’s simplicity + extended global coverage.
Can include custom support, managed services & compliance solutions.
Which Microsoft Phone System Solution is Right for You?
Feature | Direct Routing | Calling Plans | Operator Connect |
Best for | Large enterprises | Small businesses | Mid-sized businesses |
Provider Choice | Any telecom provider | Microsoft only | Selected telecom providers |
Global Coverage | Nearly worldwide | 33 countries | Extended coverage |
Pricing | Custom & negotiable | Fixed monthly fee | Varies by provider |
Flexibility | High (custom integrations) | Limited | Moderate |
Support & Service | Full MSP support | No migration support | Provider-managed |
Need help choosing the right option? Contact our telephony specialists to find the best solution for your business!
Final Thoughts: Why Migrate to Microsoft Phone System?
By integrating Microsoft Phone System with Teams, businesses can:
Eliminate traditional PBX hardware
Reduce telecom costs
Unify all communication tools in one cloud-based platform
Improve productivity & customer service
Ready to upgrade your business telephony?
At Astroline, we specialize in Microsoft Teams Direct Routing & cloud telephony solutions.
Contact us today to get expert guidance on setting up your Microsoft Phone System!
Let’s talk!
