With businesses expanding, traditional calling isn’t always possible within the organization. And Microsoft understands it well. They fulfill this need with Teams phone.
Teams Phone is a fantastic VoIP solution that perfectly integrates with other Microsoft apps, so you don’t need to use any phone service.
In this article, I’ll show you the ins and outs of Microsoft Teams VoIP. So Without further ado, let’s jump in.
Key Takeaways:
- Microsoft Teams Phone is a VoIP solution that integrates with other Microsoft apps, allowing you to make and receive calls without traditional phone lines.
- Teams Phone uses cloud-based technology to transmit audio data packets over IP networks, offering features like PBX options and the ability to connect to existing PSTN for external calls.
- You require Microsoft Office 365 subscription, a Teams Phone Standard license, and a calling plan to use it.
- Teams Phone is best suited for organizations within the Microsoft ecosystem, while traditional hosted VoIP services work with various platforms but lack special integration benefits.
- It is more affordable than traditional VoIP but may not be suitable for midsize and large companies with complex call center needs.
What is Teams VoIP Phone Service & How Does it Work?
VoIP, also known as Voice over Internet Protocol (VoIP), uses the Internet to make and receive calls directly from a computer. Teams Phone uses this cloud-based phone to transmit audio data packets over IP networks, so you don’t need to use traditional phone lines.
Over the years, Teams Phone service has become a full-featured VoIP solution that perfectly blends with the Microsoft ecosystem and solves all of your communication needs. Now you can make and receive calls using their Teams client on various devices, such as computers, smartphones, and IP-enabled desk phones.
This technology also enables Private Branch Exchange (PBX) option with the call control feature within the organization. So internal calls within the organization never go to the Public Switched Telephone Network (PSTN).
Also, Teams VoIP provides add-on options to connect your existing PSTN for making external calls around the globe.
But how does Teams VoIP work?
Well, when you make a phone call using Teams Phone, Microsoft directs it through a virtual PBX. That PBX redirects the call to the external number using one of two options:
- Microsoft calling plan: If your organization has a calling plan from Microsoft itself with the Domestic and International Calling Plan license, PBX will use it.
- Telecom Carrier: if you integrate your phone operator like ATT, NTT, or BT, the PBX will use that. But you can limit these usages using the Session Border Controller (SBN) technology.
Check the diagram to understand this process clearly:
Though Teams VoIP works in a complicated way, you don’t need to follow any complicated procedures to make a phone call from Teams Phone. Follow this procedure to do it:
- Open Microsoft Teams and click on the phone icon.
- Insert the country code + phone number in the dial pad.
- Tap on the Call option at the bottom.
However, you can only use this calling feature if your organization has one Microsoft Office 365 subscription, one call license, and a Microsoft calling plan.
You must choose one from each column from the following table:
| Office 365 Subscription | Call License | Microsoft Calling Plan |
|---|---|---|
| Office 365 E1 / A1 / G1 | Teams Phone Standard License | Teams Phone Number with Calling Plan |
| Office 365 E3 / A3 / G3 | Teams Phone Standard License | Teams Phone Number with Calling Plan |
| Office 365 E5 / A5 / G5 | Included | Domestic or International Calling Plan Only |
| Microsoft 365 Business Basic / Standard / Premium | Teams Phone Standard License | Teams Phone Number with Domestic + International Calling Plan |
| Microsoft 365 F1 | Teams Phone Standard License | Teams Phone Number with Calling Plan |
| Microsoft 365 F3 | Teams Phone Standard License | Teams Phone Number with Calling Plan |
After getting these licenses from Microsoft, you can easily make a VoIP call using Teams.
Strengths and Weaknesses of Teams VoIP (Teams Phone)
Microsoft Teams Phone has a range of features for its users that increases flexibility, scalability, and cost-efficiency compared to traditional phone systems. But it also has its unique limitations.
Here are some advantages and drawbacks of Teams Phone service:
Advantages
- Teams Phone gives you features like Dynamic Caller ID, Co-organizer Capability, and meeting captions, enhancing connectivity and communication.
- It perfectly integrates with the Microsoft ecosystem.
- You don’t need to manage any servers because it’s a Cloud-based system.
- You can use Teams phone on any device with Teams access.
- It has a high-level built-in security system.
- Teams phone has unified communications functionality. So the administration is relatively easy.
Drawbacks
- You need to replace the existing phone hardware.
- Teams phone can’t handle complicated call routing and hunt group configuration.
- You must need a high-speed internet connection; otherwise, the call quality will drop.
- You need to have in-depth knowledge about all the calling plans of Teams Phone to get the best price.
Teams Phone Vs. Traditional Hosted VoIP
Though Teams Phone and a traditional VoIP service provide similar benefits, the user base is different. Teams phone is mainly designed to integrate with Office 365 or the Microsoft Teams ecosystem. But to install Traditional Hosted VoIP, you must use a third-party provider.
For example, my organization is under the Microsoft ecosystem. It uses the Microsoft 365 organizational plan to execute all the office work and internal communication. We use Teams to chat, PowerPoint for presentations, and Outlook for mailing service.
That’s why teams phone will work better than any other VoIP service in our organization.
Here are some core differences between Teams phone and traditional hosted VoIP:
| Particulars | Teams Phone | Traditional Hosted VoIP |
|---|---|---|
| Integration | Perfectly integrates with the Microsoft Teams platform. | Works with various platforms and devices, but integration is quite difficult. |
| Ideal Ecosystem | Ideal for organizations with Microsoft subscriptions or Teams Business licenses. | Any organization can use traditional VoIP. But it doesn't give you any special parks. |
| Extended Features | Teams Phone has advanced features like file sharing, screen sharing, and real-time collaboration. | Traditional Hosted VoIP mainly focuses on call functionality. |
| Hardware options | Limited. | Offers various options. |
| Calling feature | Teams phone has Basic call-routing features like group calls, call waiting, call hold, call transfer, etc. | More advanced call options like complicated call routing and hunt group configuration are available with the basic feature. |
| Pricing | Less costly than traditional VoIP. | More costly. |
As you can see, the Teams Phone and the VoIP emphasize different user needs. So the choice between these two services solely depends on your organizational structure.
Will Microsoft Teams Replace Your Traditional Phone System?
Yes, I believe it’s very much possible in the near future. Microsoft has added features like call queue, auto-attendant, call forwarding, call waiting, caller ID; everything in Teams phone, and this service costs less than any other VoIP. That’s why more organizations are using Team Phones more than ever.
Also, many users are now switching to Microsoft’s virtual phone system as an alternative to their traditional phone systems. But some limitations hinder Teams Phone progress.
For example, I was on a group call with my teammates during remote times. My inbound call settings configuration was set to ring the group for multiple rings.
But whenever I called any absent member, other colleagues’ phones still rang even if they were on call with me. It created a huge disturbance in our meeting.
However, you won’t see these issues on a traditional Phone call. So it’s not yet possible to replace the traditional phone service.
But at this growth rate, it can achieve that point in the upcoming years. Let’s see!
Microsoft Teams VoIP pricing
You need three premium services or licenses to activate the Teams phone service. They are Office 365/ Microsoft 365 Subscription License, Teams Phone licenses, and Microsoft Calling Plan.
When you have all three, you can start calling. But likely, most organizations in the Microsoft ecosystem have one of the three licenses. In that case, you just need to buy Teams Phone Standard License and Microsoft Calling Plan to start calling.
Usually, organizations purchase Teams Phone licenses on a per-user, per-month basis. So the Teams Phone license price depends on the specific license type and the number of users.
Here’s the usual coasting of Microsoft Phone License:
- Teams Phone Standard License (Microsoft PBX Pricing) costs $8 per monthly user.
- Microsoft Teams Rooms Pro plan costs $40 per user per month.
Also, if your company buys 10 Teams Phone Standard or Teams Phone with Calling Plan user licenses, Microsoft gives one extra license for free.
But to buy additional Teams Phone Resource Account licenses beyond with unique allocation, you should use EA, EES, NCE – Partner led, CSP, EAS, Web Direct, NCE – Customer led, or contact your Microsoft CSP Partner.
After buying the Teams Phone License, you need to buy a calling plan to set up Teams VoIP.
Here are the Calling Plans costing in Microsoft Teams:
- Teams Domestic Calling Plan license fee is $12 per user per month.
- Teams Domestic + International Calling Plan license costs $24 per user per month.
- Microsoft Teams Phone with Calling Plan Pricing, aka Microsoft 365 Business Voice, $15 per user per month.
- Teams Operator Connect’s price is USD 5.5 per user per month if you use Communication Square (maybe more or less for other operators).
- Teams Direct Routing price Depends on your VoIP Provider.
Teams Phone also provides some additional services like Compliance Recordings or call centers. But you have to pay additional fees if you want those services.
Check out the cost of additional features in teams Phone:
| Service | Costing (Per User Per Month) |
|---|---|
| Microsoft Teams Compliance Recordings | $15 |
| Teams Paging service | $20 (per device per month) |
| Microsoft Teams E911 | $2 |
| Teams Call Center service | $75 |
| Microsoft Teams Fax Solution | $20 |
| Teams Phone System Consulting | Starts at $10,000 for a 100-people business |
These are the additional services you can get with a Teams Phone. While buying any license, you should carefully evaluate your options.
Is Teams VoIP System Suitable for Your Organization?
Microsoft Teams Phone is a great fit for most small and mid-range organizations. It can easily replace any existing VoIP phone if your organization is in the Microsoft ecosystem.
However, I don’t think it’s a suitable choice for a call canter. Because Teams phone can’t handle complicated call routing and hunt group configuration.
Though many businesses with small call centers argue, Teams Phone with the additional Teams Call Center service subscription fulfills their needs. But it only becomes possible because they do not need the complex routing features.
Based on my research, I observed that midsize companies and enterprises don’t want to switch to Teams VoIP services. Because they have to replace their entire PBX system to implement this technology, which is very costly and has risks.
On top of that, Teams VoIP service can’t provide the advanced functions that larger companies need most. So it’s not suitable for mid and large-size companies yet.
But hopefully, Microsoft will perfect Teams VoIP with the necessary updates so that it can replace the traditional call center in the near future.
FAQs
Can you call a phone number from the Teams meeting?
Yes, you can dial out a phone number during a Teams meeting, but there are two conditions you must fulfill: 1. Your organization must have Teams Phone Standard License, and 2. The meeting organizer must enable the audio conferencing option.
Is Teams VoIP encrypted?
Yes, they are encrypted with Microsoft 365 encryption technologies. Also, the call data stored in Microsoft data centers use TLS and SRTP data encryption.
Are Teams calls end-to-end encrypted?
Yes, the unscheduled one-to-one calls (both audio and video) have end-to-end data encryption. But you can record that call from your device if you like.
Conclusion
Long story short, Teams phone service is similar to any traditional VoIP service available in your region. But it provides Perfect integration with the Microsoft ecosystem.
However, it can’t handle complicated call routing and hunt group configuration. That’s why Teams phone isn’t suitable for midsize companies and enterprises.
After reading this article, you have all the required knowledge about Teams VoIP and its features.
So are you buying this service for your organization? Comment below.
