| Microsoft Teams Phone brings business calling into Teams. With the right licences and a connection to the public phone network, staff can make and receive calls to landlines and mobiles using supported computers, mobile apps or handsets. It is not automatically included in a Microsoft 365 subscription, and it will not suit every call flow. |
If your team already uses Teams, Microsoft Teams Phone may be a practical alternative to a separate phone platform. This guide is for New Zealand owners and managers deciding whether it fits their calls, licences, carrier arrangements and budget. It explains what Microsoft Teams Phone is, which licences are involved, the calling options available in New Zealand, what to include in the cost and what to check before moving your numbers.
Our cloud phone system guide covers hosted calling in general, and our VoIP guide explains internet calling as a technology. Here the focus is the Microsoft option.
What is Microsoft Teams Phone?
Microsoft Teams Phone is the Microsoft capability that lets Teams handle business phone calls. A customer can ring a business number and the call arrives in Teams on a laptop, a mobile app or a certified desk phone. Staff dial out the same way, and features such as voicemail, call forwarding, auto attendants and call queues are configured in the same Microsoft environment.
Two kinds of calling are easy to confuse. Teams app calls between people using Teams are part of ordinary Teams. Calls to and from landline and mobile numbers are different: they need Teams Phone licensing for the user and a connection to the public phone network, set up through one of the calling options described below.
How is it different from a separate phone platform?
A separate phone platform runs on its own hardware or its own hosted service, with its own apps and administration. With Microsoft Teams Phone, calling sits beside chat and meetings, uses the same Microsoft accounts and is managed from the Teams admin centre alongside your wider Microsoft 365 administration.
That can suit a business whose staff already work in Teams all day. It does not remove the work of running a phone system: numbers, call routing, devices, the carrier service and any routing infrastructure still need to be set up and looked after.
What licences do you need for Microsoft Teams Phone?
Think of a Microsoft Teams Phone setup in three parts: access to Teams, the Teams Phone capability, and a carrier connection for calls to phone numbers. Your existing subscriptions may cover some of these. Check the exact licences before adding anything, including the requirements for shared phones, call queues and auto attendants.
- Access to Teams. Microsoft 365 business plans come in versions with and without Teams. A suite without Teams needs a separate Teams licence before Microsoft Teams Phone can be added. Our guide explains the Microsoft 365 business plans.
- The Teams Phone capability. Microsoft lists Microsoft 365 E5 as including Teams Phone. Business Basic, Business Standard, Business Premium and E3 need the Teams Phone Standard add-on for each user who makes phone calls.
- A connection to the phone network. A Microsoft Calling Plan licence is needed only when Microsoft is your phone provider. Operator Connect and Direct Routing use a carrier service instead.
- Shared phones and call handling. Common-area phones, auto attendants and call queues have their own licensing requirements, such as the resource account licence Microsoft documents for auto attendants and call queues.
Not every user needs a dedicated number. With Microsoft’s Shared Calling, Teams Phone users share a business number for outside calls, with incoming calls to that number handled by an auto attendant, so they do not each need an individual number or Calling Plan. Microsoft sets out the combinations in its Teams Phone licensing guidance.
Licence names and bundles change from time to time, so confirm what your tenant already holds before budgeting for Microsoft Teams Phone. Exodesk can check this as part of a review.
NZ calling options for Microsoft Teams Phone
Calling options are the ways Microsoft Teams Phone connects to the public phone network. Microsoft documents several, and a business can use more than one in the same tenant. Microsoft Calling Plans are available in New Zealand, alongside Operator Connect and Direct Routing.
| Calling option | Who provides the calling service | What to check |
|---|---|---|
| Microsoft Calling Plan | Microsoft acts as the phone provider and supplies the numbers. | Which plan suits your calling pattern, number availability for your area and how support works. |
| Operator Connect | A participating telecommunications provider certified by Microsoft. | Whether your preferred provider participates, its call charges and terms, and which issues it supports. |
| Direct Routing | A carrier service connected through a certified session border controller. | Who procures and manages the session border controller, the carrier contract and who owns faults. |
Microsoft’s PSTN connectivity overview compares these options. Its New Zealand availability information lists pay-as-you-go, domestic and international Calling Plans.
Microsoft Calling Plans
Microsoft Calling Plans use Microsoft as the phone provider. Each Microsoft Teams Phone user who needs a number and outside calling is assigned a Teams Phone licence and a Calling Plan licence. Buying a plan does not make calling work on its own: numbers, emergency addresses, call routing and devices still need to be set up and tested.
Operator Connect
Operator Connect uses a participating telecommunications provider that has completed integration with Microsoft. The business subscribes to that provider and enables it for Microsoft Teams Phone in the Teams admin centre. Your existing provider can be used this way only if it participates, so check before assuming you can keep the same arrangement. Microsoft’s guidance describes a shared support model, with the provider responsible for the phone network, numbers and porting.
Direct Routing
Direct Routing connects a carrier service to Teams through a certified session border controller. Microsoft describes that controller as something you, an integrator or a hosted provider can procure and manage, so it does not have to be a box in your office. Direct Routing gives flexibility for specific carrier contracts or calling needs, and it adds routing configuration that someone has to own.
How do you choose a calling option?
Compare number availability, call charges, support responsibilities and migration requirements for each route you are considering. Look at the numbers you need to keep, where your staff call, who you want to deal with when something goes wrong and which parts of the setup you want a provider to manage. Teams calling works the same way for staff whichever route sits behind Microsoft Teams Phone, but the contract, support and porting process differ.
What does Microsoft Teams Phone cost?
The real cost is the complete working setup, rather than the advertised Teams Phone licence alone. Start with what you already pay, then compare the new recurring charges and the one-off work over the same period. Microsoft Teams Phone may save money, but that depends on your current costs, calling patterns and the service you need.
| Include in the comparison | What to check |
|---|---|
| Microsoft licences | Existing entitlements and additional user, shared-device or resource-account requirements. |
| Carrier service | Numbers, included destinations or minutes, excess calls and contract terms. |
| Devices and network | Suitable headsets or phones, existing compatibility and any connectivity work. |
| Setup and migration | Call routing, porting, testing, staff guidance and existing contract exit costs. |
| Ongoing management | Who handles changes and faults, the support hours and any separate fee. |
Ask for the one-off and ongoing Microsoft Teams Phone costs separately, with GST treatment, minimum terms and exclusions clear. A per-user licence price is useful only when you know which other charges sit beside it.
Your current arrangement needs the same treatment. Gather recent phone and line invoices, any maintenance or support agreement for the existing system, contract end dates and early termination terms, and the handsets you would keep or replace. Our guide to IT budget planning shows how to fit a change like this into the year ahead.
What about handsets?
Staff can make and take calls in the Teams app on a computer with a suitable headset, or in the mobile app. Where a physical phone is needed, such as at reception or in a shared area, use a device certified for Teams. Check whether existing handsets can be reused before assuming they will work, and include any new devices and shared-phone licences in the cost. For meeting spaces, meeting room technology covers Teams-ready room equipment.
When is Microsoft Teams Phone a good fit?
Microsoft Teams Phone is worth considering when your staff work in Teams and its calling features meet the business’s needs. Signs that point that way include:
- Teams is already the daily tool. Staff have Teams open through the working day and are comfortable answering calls on a computer or mobile.
- The call flows are covered. Auto attendants, call queues, voicemail and forwarding handle how your main number is answered.
- Licensing is in place or planned. Your Microsoft 365 plans are known, and the Teams Phone and calling costs have been compared in full.
- Staff work in several places. People answer from the office, from home or from another site, and a number tied to the user suits that.
- One administration point helps. Managing phones with the same accounts as email and Teams fits how your IT is run.
When should you compare another phone platform?
Teams is itself a business phone platform. Microsoft Teams Phone provides business call handling, including auto attendants and call queues, and Microsoft documents historical reporting for auto attendants and call queues. High call volume, several sites or shared phones do not rule it out on their own.
Compare another platform when your required reception workflows, reporting, integrations, specialist devices or staff experience are better served elsewhere. A busy main number alone does not decide the answer. Questions worth asking include:
- Reception. How does your receptionist need to see, transfer and park calls, and does the Teams experience support it?
- Reporting. Which call reports do managers rely on, and are they available in the form you need?
- Integrations. Do your CRM, helpdesk or practice software need to work with the phone system, and is that supported for your exact applications?
- People outside Teams. Do some staff need business calls without working in Teams all day?
- Contact-centre needs. Do you need skills-based routing, wallboards or detailed queue management? Contact centre software covers that layer.
Exodesk also supplies 3CX through our business phone systems service, so we have an interest in both answers. We can set out how Microsoft Teams Phone and an alternative compare for your requirements, and where Teams Phone covers what you need, that is the recommendation.
Moving your numbers and call routing
Moving to Microsoft Teams Phone is a planned change. Confirm which numbers can move and the carrier’s expected lead time before setting a date, and build the call routing before any number is transferred.
Confirm the numbers
List every number in use, including the main number, direct dials, fax lines and 0800 numbers. The chosen provider confirms which are eligible to port and what it needs from you.
Build and test the routing
Set up the Microsoft Teams Phone auto attendant, call queues, after-hours rules and voicemail to match how your main number is answered. Test with temporary numbers where appropriate, so staff can practise before anything moves.
Agree the cutover
Agree the port date, the change window, any expected interruption and the fallback actions if something does not work as planned.
Port and check
Once the numbers move, check inbound and outbound calls, queues, voicemail, devices and emergency calling details for each site.
Close the old service
Cancel the old service only after the transfer and any related services, such as alarm lines or EFTPOS connections, have been checked.
Port eligibility and timing depend on the chosen route and provider. For numbers moving to Microsoft Calling Plans, Microsoft’s New Zealand number management guidance lists geographic numbers and an approximate 35-business-day timeframe. That is not a universal carrier lead time, and the page is not recent, so confirm current terms with the provider. Check 0800 numbers separately.
A ported number can only ring on one system at a time. The parallel period is for staff to practise on the new setup with temporary numbers, not for the same public number to work on both.
Managing calling and planning for outages
Agree who manages Microsoft Teams Phone licences, numbers, call queues, devices and faults after the move. Teams phone settings are managed in the Teams admin centre alongside wider Microsoft account and licence administration. Endpoints, the carrier service and any routing infrastructure still need someone responsible for them.
Staff changes
Add Microsoft Teams Phone numbers, licences and queue membership to your joiner and leaver process. When someone leaves, remove or reassign their number and licence, update any call queues or forwarding rules they were part of and record what was changed. Our employee IT onboarding checklist covers the wider process.
What happens if the internet fails?
An office internet outage is a different problem from a carrier or Microsoft outage, and each needs its own plan. If the office connection drops, staff may still answer through the Teams mobile app using mobile data, provided the wider service is available. Other fallback routes, such as diverting the main number, need to be configured and tested before go-live. Staff working from home depend on their own connections, which our remote work IT guide covers.
Emergency calls
Confirm how emergency calls and location information are handled in Microsoft Teams Phone for each site and for staff working elsewhere, and keep another way to call 111 available, such as a charged mobile. Microsoft’s guidance on emergency addresses and call routing explains that routing depends on the calling option, and that Direct Routing needs its own routing configuration.
Microsoft Teams Phone support from Exodesk
Exodesk can check your Microsoft licences, calling requirements and current costs, set up Microsoft Teams Phone, including Microsoft Calling Plans, and help you compare it with another platform where needed. We agree the call routing, porting plan, fallback arrangements and ongoing responsibilities with you before anything changes.
Exodesk has supported New Zealand businesses since 1989. Today, our Christchurch and Dunedin teams support businesses nationwide.
NEXT STEP
Considering Teams for your business calls?
Exodesk can check your Microsoft licences, calling requirements and current costs, then help you compare Teams Phone with another platform where needed. Tell us how your main number is answered, how many people need calls and whether you want to keep existing handsets.
Or see our business phone systems setup and support.
Microsoft Teams Phone questions
Does Microsoft 365 include Teams Phone?
Not automatically. Check the exact subscription for Teams and Teams Phone entitlements, then arrange the phone-network connection. Having Teams for chat and meetings does not by itself let staff call landline or mobile numbers.
Do I need a Microsoft Calling Plan?
Only if Microsoft is your chosen phone provider. Operator Connect and Direct Routing use a carrier arrangement instead. Teams Phone licensing is still required for those users, but a separate Microsoft Calling Plan is not required for those routes.
Can I keep my existing business number?
In many cases, but the chosen provider must confirm that the number is eligible. Check geographic and 0800 numbers separately, along with services attached to the existing account. Agree the port date and fallback plan before cancelling anything.
How much does Microsoft Teams Phone cost?
The total depends on licences you already hold, the users and shared devices needing calls, the carrier service, setup and ongoing support. Compare the complete recurring cost and the one-off migration cost with your current arrangement. Savings are possible, but are not guaranteed.
Can Microsoft Teams Phone replace a PBX?
It can. Microsoft Teams Phone provides business call handling, including auto attendants and call queues. Whether it replaces your current platform depends on the reception workflow, reporting, integrations, devices and calling resilience you require.
What happens if the office internet fails?
Staff may still answer through the Teams mobile app using mobile data, provided the wider service is available. Other fallback routes need to be configured and tested. An office outage and a carrier or Microsoft outage need different plans, including another way to call 111.
How long does the move take?
The timing depends on the carrier, number eligibility, configuration and testing. Confirm the porting lead time before promising a date. Staff can practise on a pilot setup before the number moves, but the transfer itself still needs a planned change window.
Do I need to buy new desk phones?
Not necessarily. Staff can use the Teams app on a computer with a suitable headset, or the mobile app. Where a physical phone is needed, use a device certified for Teams and check whether existing handsets can be reused.
What is the difference between Teams Phone and VoIP?
VoIP is the general technology for carrying calls over internet connections. Teams Phone is a Microsoft service that uses it to deliver business calling inside Teams. Other VoIP phone platforms run separately from the Microsoft environment.
Can staff in different locations share the same phone system?
Yes, provided each location and home connection can carry calls reliably. Numbers are assigned to users rather than desks, and call queues can include staff wherever they work, so calls can be answered from the office, from home or another site. Emergency calling details still need to be set for each location.
Contact us or call 0800 396 337 to talk about Teams calling for your business.
