Microsoft Teams Phone turns Teams into a full business phone system, letting staff make and receive external calls from the same app they already use for chat and meetings. For small businesses with an ageing PBX, it consolidates communications and removes a box from the server room. Here is how to set it up.
Step 1: Choose how you get phone numbers
You have two main paths. Microsoft Calling Plans let you buy numbers and minutes directly from Microsoft — simplest, but not available in every country. Direct Routing connects Teams to a third-party telecom provider via a Session Border Controller, giving more flexibility and often lower call costs.
Step 2: Assign licenses
Teams Phone requires the Teams Phone license plus, for Calling Plans, a calling plan license. Assign these to each user who needs external calling. Internal Teams-to-Teams calling is already included in standard licenses.
Step 3: Port or assign numbers
If you are keeping existing numbers, submit a port order to move them from your current carrier — this can take a couple of weeks, so plan ahead. For new numbers, acquire them in the Teams admin center and assign one to each user or service.
Step 4: Build auto attendants and call queues
An auto attendant answers your main number and routes callers with a menu ("Press 1 for sales"). A call queue distributes incoming calls to a group of agents with hold music and overflow handling. Together they replace the call-routing logic of a traditional PBX.
Step 5: Test and configure devices
Test inbound and outbound calls, voicemail, and call transfers thoroughly before cutting over. Provision desk phones or headsets as needed, and make sure emergency calling is configured with accurate address information for each location.
Teams Phone is a compelling PBX replacement for businesses already invested in Microsoft 365. Plan number porting early, build sensible call routing, and test exhaustively before retiring the old system.
Korur Security Team
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