In short
Teams Phone is Microsoft's cloud phone system inside Microsoft Teams. It adds phone numbers, voicemail, transfer, auto attendants and call queues, and is licensed per user on top of a Microsoft 365 or Teams plan. Forever Systems can quote and set up Teams Phone, connect it to the phone network and keep your numbers.
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What Teams Phone adds to Teams
Most Microsoft 365 plans let colleagues call each other inside Teams. Microsoft Teams Phone is the add-on that turns Teams into a business phone system. Microsoft describes (opens in a new tab) the licence, Teams Phone Standard, as a hosted telephone service with Private Branch Exchange (PBX) capabilities.
With Teams Phone, users get:
- A phone number on their Teams account, ringing in the Teams app on a computer and on a mobile
- Cloud voicemail, call forwarding, transfer, hold and caller ID
- Auto attendants (menus and opening hours) and call queues for reception, sales or support teams
- Call groups and delegation, so colleagues or an assistant can answer and place calls for someone else
- One app for calls, chat and meetings, with one sign-in
Microsoft says Teams Phone lets an organisation replace its existing PBX with features delivered from the same platform as its productivity tools. Teams Phone features lists what is included.
What we supply
We supply the three parts a Teams phone system needs, and set them up together:
- The Teams Phone licence for each user, added to the Microsoft 365 or Teams plan you already hold
- Calling and numbers: our Teams calling service connects Teams to the phone network, with new numbers or your existing numbers ported
- Set-up: users, auto attendants, call queues and opening hours built and tested with you
Licences can be billed monthly, with terms confirmed at quote. Contact us for a Teams Phone quote.
Ways to connect Teams to the phone network
A Teams Phone licence does not by itself include calls to ordinary phone numbers. For that, Teams needs a connection to the PSTN (public switched telephone network). Microsoft supports four options, and more than one can be used in the same Microsoft 365 tenant.
| Option | Who provides calls and numbers | Good fit when |
|---|---|---|
| Microsoft Teams Calling Plans | Microsoft is your phone carrier | You want the simplest set-up, managed by Microsoft |
| Operator Connect | A Microsoft-certified operator, enabled in the Teams admin centre | You want an operator's numbers without running a Session Border Controller |
| Teams Phone Mobile | A participating mobile operator, using the number on the user's SIM | Staff mainly work from a mobile and want one business number |
| Microsoft Teams Direct Routing | A carrier or SIP trunk, through a certified Session Border Controller | You want to keep your numbers and carrier, or connect an existing phone system |
Our Teams calling service uses Direct Routing, run for you, so there is no equipment on your site. Teams calling explains the service and all four options, and Operator Connect vs Direct Routing vs Calling Plans sets them side by side.
Not sure which licence fits? Ask us
Tell us what you need and we will help you choose the right licence.
Licences in brief
Teams Phone is licensed per user, on top of a plan that includes Teams. Three layers make a working phone system:
- A plan that includes Teams, such as Microsoft 365 Business Basic, Standard or Premium, or an Enterprise suite with Teams Enterprise.
- A Teams Phone licence: Teams Phone Standard for most users. Microsoft lists Teams Phone among the features of Microsoft 365 E5.
- A connection to the phone network, with numbers.
Auto attendants and call queues use Teams Phone Resource Account licences, which Microsoft supplies at no cost. Microsoft Teams Phone Standard covers every licence and the plans that qualify.
What Teams Phone works with
Teams Phone works with the Teams apps on desktop and mobile, and with Teams-certified desk phones from Yealink and Poly.
Need help choosing?
We will recommend what fits your organisation and explain why, in plain English.
How a move to Teams Phone works
- Licence checkthe Microsoft 365 or Teams plan each user holds
- Calling optionhow Teams reaches the phone network
- Numbersnew numbers, or your existing numbers ported
- Call flowsauto attendants, call queues and opening hours
- Testingcall flows tested with you before the switch
Teams Phone setup describes each step, and Teams phone numbers covers new numbers and porting. If your staff do not spend the day in Teams, Teams Phone alternatives lists the other business phone systems that Forever Group (opens in a new tab)'s specialist sites cover.
Sources (checked 11 November 2026): Microsoft Learn, "Microsoft Teams add-on licenses", "What is Teams Phone", "PSTN connectivity options" and "Certified Teams phones"; Microsoft's Microsoft 365 E5 plan page.
More Teams Phone guides
How Forever Systems helps with Teams Phone
Forever Systems can quote and set up Microsoft Teams Phone for your organisation and connect it to the phone network.
- Licence and calling check: we look at the Microsoft 365 plan you hold and recommend the Teams Phone licences and calling option that fit
- Numbers kept: we plan and manage the porting of your existing numbers
- Call flows set up: auto attendants, call queues and opening hours built and tested with you
- Works with what you use: the Teams apps on desktop and mobile
- Licensing in one place: licences can be billed monthly, with terms confirmed at quote
We work with businesses, schools, charities and public sector organisations. Pricing depends on users, licences and calling, so ask us for a quote.
Frequently asked questions
What is Microsoft Teams Phone?
Microsoft Teams Phone is Microsoft's cloud phone system built into Teams. It adds PBX features such as phone numbers, voicemail, transfer, auto attendants and call queues. To call ordinary phone numbers it also needs a connection to the phone network: a Microsoft Calling Plan, Operator Connect, Teams Phone Mobile or Direct Routing.
Can Microsoft Teams be used as a phone system?
Yes. Microsoft says Teams Phone lets an organisation replace its existing PBX. With a Teams Phone licence for each user and a connection to the phone network, Teams provides numbers, auto attendants, call queues, voicemail and transfer.
Is Teams Phone included in Microsoft 365?
Microsoft lists Teams Phone among the features of Microsoft 365 E5. With other plans, including Microsoft 365 Business Basic, Standard and Premium, Teams Phone Standard is an add-on licence for each user. Calls to the phone network then need a Calling Plan or another connection option.
Can we keep our existing phone numbers with Teams Phone?
Usually, yes. Existing numbers can normally be ported to the service that connects Teams to the phone network. With our Teams calling service we check your numbers and plan the port with you.
Does Teams Phone need equipment on site?
No. Teams Phone is a cloud service that runs in the Teams apps on a computer or a mobile, so many organisations use it with no phone equipment on site at all.
Still have a question about Microsoft Teams Phone?
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