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Microsoft Teams Phone

By Microsoft

Cloud calling in Microsoft Teams

Paid plans only
Tracked since 2026

The Bottom Line

Price
Paid plans only. Compare plans

Key facts

  • Cloud PBX replacement built into Microsoft Teams with AI call intelligence
  • Plans from $10/user/mo (phone system only) to $34/user/mo (international calling)
  • Best for organizations already invested in the Microsoft 365 ecosystem

Pros

  • Native Teams integration eliminates separate phone infrastructure
  • Flexible PSTN options: Calling Plans, Operator Connect, or Direct Routing
  • AI features like real-time summarization reduce manual note-taking
  • Industry-leading uptime guarantee backed by financial SLA
  • Scales from small teams to enterprise with single admin console

Cons

  • Requires a separate Microsoft Teams license on top of phone pricing
  • Domestic minute caps may not suit high-volume call centers
  • Calling plan availability varies by country and region
  • Complex licensing tiers can confuse procurement teams

What is Microsoft Teams Phone?

Microsoft Teams Phone is a cloud-based calling solution built into Microsoft Teams that replaces traditional PBX systems. It provides VoIP and PSTN calling, AI-generated call summaries, auto attendants, call queues, and real-time transcription, all managed from a single admin console with 99.999% uptime SLA.

Key Features

  • VoIP and PSTN calling with flexible connectivity options
  • AI-powered call summaries, transcription, and voice isolation
  • Auto attendants and call queues with routing rules
  • Call Quality Dashboard and bandwidth controls
  • 99.999% uptime SLA with survivable branch appliance
  • End-to-end encryption and compliance recording
  • Shared calling for groups without dedicated numbers
  • Teams-certified device ecosystem support

Pricing

Paid

Microsoft Teams Phone offers paid plans. Visit their website for current pricing details.

View pricing

Is Microsoft Teams Phone worth the price?

Fair value

It's best for existing Microsoft 365 users seeking integrated communication.

Hidden Costs & Gotchas

Overage fees for exceeding minute bundles

Full Microsoft Teams Phone pricing: every plan, hidden costs and alternatives

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Best Microsoft Teams Phone Alternatives

Top alternatives based on features, pricing, and user needs.

Microsoft Teams Phone by the numbers

Microsoft Teams Phone compared with 192 Transcription tools on Toolradar, as of Nov 2026
Metric Microsoft Teams Phone Peer median Position (1 is best)
Free plan No 63% have one n/a
Listed as an alternative to 3 tools 1 #56 of 192 (joint)

Listed as an alternative to: #53 on 2026-10-16 to #56 on 2026-11-11 (rank among 192 tools, 1 is best).

Each position is counted among the tools that have data for that row, as noted under it. All Transcription data · How we compute this. Advertising and placement fees are not inputs to any position.

Cite this: Toolradar, “Microsoft Teams Phone by the numbers”, Nov 2026.

Most buyers shortlist 2 or 3 tools before committing. Pull a side-by-side comparison or browse the full alternatives shortlist below.

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Microsoft Teams Phone FAQ

Does Microsoft Teams Phone require a separate Teams license?

Yes. Teams Phone is an add-on that requires an existing Microsoft 365 or Office 365 license that includes Microsoft Teams. The phone plans cover calling features only.

What PSTN connectivity options does Teams Phone support?

Three options: Microsoft Calling Plans (bundled minutes), Operator Connect (partner telcos), and Direct Routing (bring your own SBC/carrier). You can mix options across locations.

Can Teams Phone work during internet outages?

With a Survivable Branch Appliance (SBA), on-premises users can continue making and receiving PSTN calls even when the cloud connection is down, ensuring business continuity.

Does Teams Phone include AI features?

Yes. It offers AI-generated call notes, real-time transcription, call summarization, voice isolation to reduce background noise, and speech enhancement, all included in every plan.

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