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Microsoft Teams Phone System for UK Businesses

Microsoft Teams Phone System turns everyday Teams into a full business phone platform for UK organisations. No more desk phones, separate call apps, or messaging tools calls, meetings, and collaboration all run through one system staff use daily. Businesses manage communication from single place instead of juggling multiple services.

For PSTN and ISDN switch-off, Teams Phone System keeps existing numbers, handles 999 emergency calling, shifts to Microsoft Teams VoIP without changing how customers reach you. Companies modernise phones while maintaining their public number presence and UK telecom compliance completely.

As UK copper networks phase out, businesses face voice service decisions. Microsoft Teams Phone System offers cloud-based solution fitting modern work patterns. Organisations replace traditional lines without overhauling entire communications infrastructure.

What Is Microsoft Teams Phone System?

Microsoft Teams Phone System brings business calling directly into Teams. Traditional PBX hardware and phone lines get replaced by Teams VoIP that runs in Microsoft’s cloud. No servers take up space in your office.

Administrators handle users, numbers, routing and security via the Microsoft 365 admin centre. PBX maintenance simply disappears from the equation.

With Teams Phone System, UK businesses can:

  • Use UK geographic (01/02) and non-geographic (03/08) numbers
  • Set internal extensions for all employees
  • Run call queues and auto attendants
  • Record and route calls efficiently

Teams changes from collaboration app to complete Microsoft phone system.

Where Microsoft Teams Phone System Fits in the UK Phone System

Microsoft Teams Phone System belongs to the UCaaS category—Unified Communications as a Service. It combines multiple tools into one cloud platform instead of working as just a phone system.

Hosted PBX platforms handle calls primarily. VoIP providers supply SIP lines and basic call features.

UK phone systems split into three main groups:

 Traditional PBX systems running on physical hardware

 VoIP services focused mainly on internet calling

 UCaaS platforms like Teams VoIP that mix calling, meetings, messaging, collaboration

See how it compares to other systems

How Microsoft Teams Phone System Works

When customers dial your business number, Microsoft Teams Phone System carries the call over Teams VoIP straight into Teams. The system checks your routing rules and sends it to the right person, queue, or auto attendant.

Calls work on:

  • Teams desk phones
  • Laptops or desktop computers
  • Mobile phones
  • Teams meeting room systems

Since everything ties to one Microsoft user account, staff keep their business number anywhere. Office, home, travelling they answer in the same Teams Phone System app.

Replacing PSTN & ISDN With Microsoft Teams Phone System

UK businesses face PSTN and ISDN switch-off by 2027. Copper networks can’t handle cloud services, flexible working, or modern call features.

  • Microsoft Teams Phone System replaces them because it:
  • Runs over existing broadband connections
  • Ports UK geographic and non-geographic numbers
  • Provides compliant 999 emergency calling

 

Transfer BT, SIP, or hosted PBX numbers into Teams Phone System customers dial exactly the same way. Teams VoIP offers low-risk transition from traditional lines while keeping business continuity intact.

Microsoft Teams Phone System Features

Auto attendants and digital receptionists

Voicemail and voicemail-to-email

Desktop, mobile, and desk phone apps

Integration with Outlook and Microsoft 365

Call queues and ring groups

Call recording and reporting

Conference calling and screen sharing

Call recording and reporting

All users, numbers, and call flows are managed in Microsoft’s admin portal, giving IT teams full visibility and control without maintaining any on-site telephony hardware.

See feature differences side by side.

2026 AI Calling Capabilities

Microsoft has added AI-powered features to the Microsoft Teams Phone System to improve call handling and efficiency. These include:

  • Live call transcription with real-time captions
  • Sentiment analysis to detect caller mood and urgency
  • Voice-driven auto attendants
  • Automatic meeting notes stored in Microsoft 365

These tools allow businesses to handle higher call volumes, capture important conversations, and improve customer experience without increasing headcount

Benefits of Microsoft Teams Phone System

Lower running costs

No PBX hardware means fewer IT bills and simpler per-user licensing. Skip maintaining physical phone systems completely. Monthly expenses drop compared to traditional setups.

Supports hybrid working

Staff keep the same business number across laptops, mobiles, desk phones. Work from office, home, or travel without missing calls. Hybrid teams stay connected seamlessly.

Built into Microsoft 365

Calling lives alongside Outlook, calendars, contacts, files—all in one system. No jumping between apps for communication. Everything centralised where teams already work.

PSTN & ISDN ready

UK number porting works smoothly with 999 emergency calling support. Move off copper lines without changing public numbers. Businesses stay compliant during switch-off.

Easy to scale

Add or remove users without new phone lines or hardware installs. Perfect for growing teams or seasonal peaks. Flexibility matches business changes instantly.

Centralised control

Microsoft 365 admin portal manages all users, numbers, call routing. No on-site phone equipment to troubleshoot. IT gains full visibility without hardware headaches.

Who Microsoft Teams Phone System Is Best Suited For

Microsoft Teams Phone System works perfectly for businesses already using Microsoft 365. Phone calling lives alongside email, meetings, file sharing all in one platform. Hybrid and remote teams answer business calls from any device through the Teams app they know.

Professional services, sales teams, support desks benefit most. Call history, contacts, calendars stay together. Organisations replacing PSTN or ISDN gain too UK number porting and 999 calling without new hardware installations.

Who Should Avoid Teams Phone System

Large Call Centres

Complex IVR trees, advanced queue logic, detailed agent reporting exceed Teams Phone limits. Platform prioritises collaboration over deep call-centre control.

Non-Microsoft 365 Users

Teams Phone demands Microsoft ecosystem for identity, licensing, management. Businesses without M365 face steep setup barriers.

Unreliable Internet Sites

Poor broadband kills Teams VoIP call quality. Stable connections remain essential for clear voice.

Teams Phone shines for Microsoft shops and hybrid teams, not high-volume contact centres or legacy setups.

Quick Comparison: Teams Phone vs Key Alternatives

Feature

Teams Phone

3CX

RingCentral

Microsoft integration

Native

Moderate

App-based

Per-user cost

£7–£12

Usage-based

£10–£20

UK data centres

Yes

Varies

Yes

Call centre scale

Basic

Advanced

Advanced

Setup complexity

Simple

Custom

Moderate

Microsoft Teams Phone System Pricing in the UK

The Microsoft Teams Phone System uses a per-user licensing model.

UK Pricing 2026

  • Teams Phone licence: £7–£12 per user/month
  • Calling Plans: £10–£20 per user/month
  • Operator Connect: Varies by carrier

This makes your pricing accurate and legally safe for UK carriers like Gamma, BT, Voiceflex, etc.

See real UK phone costs.

Which Teams Phone Setup Is Best?

Microsoft Teams Phone System connects to the public phone network three different ways. Your best pick depends on team size, call volume, and control needs.

  • Calling Plans: Microsoft supplies numbers, minutes, billing directly. Small businesses love the simplicity—no telecom providers involved.
  • Operator Connect: UK telecom partners provide SIP services inside Teams. Medium firms get lower costs, local support, good flexibility.
  • Direct Routing: Businesses link their own SIP provider to Teams. Large organisations gain full control over routing, pricing, resilience.

Small teams pick Calling Plans. Growing businesses go Operator Connect. Call-heavy firms choose Direct Routing.

How to Set Up Microsoft Teams Phone System

1

Choosing a connection method

2

Getting or porting UK phone numbers

3

Choosing a connection method

4

Configuring call routing

5

Setting up 999 emergency calling

6

Connecting devices

Why Compare Phone Systems

Compare Phone Systems treats Microsoft Teams Phone System as one option within the wider UK business phone market. It is assessed alongside platforms such as 3CX, RingCentral, and hosted PBX services based on cost, Microsoft 365 usage, call handling, and scalability.

Rather than promoting one solution, CPS highlights where Teams Phone fits best — and where other platforms may offer better value or functionality — so businesses can choose the phone system that matches their actual working style and growth plans.

Not sure which phone system fits your business?

Microsoft Teams Phone System vs Traditional Phone Systems

Traditional phone systems mean on-site PBX hardware and physical lines. IT staff or telecom engineers keep them running. Growth, office moves, new hires—all bring upgrades, engineer visits, costs, downtime.

Microsoft Teams Phone System lives entirely in Microsoft’s cloud through Teams VoIP. No PBX equipment anywhere. Numbers, users, call routing get managed via Microsoft 365 portal.

Staff answer calls on laptops, mobiles, desk phones—same business number everywhere. New team members join in minutes. Fresh offices need no phone installs or new lines.

UK businesses dropping PSTN/ISDN see big wins. Microsoft phone system skips copper line risks completely. Internet calling delivers better reliability, easier growth, lower upkeep than old hardware.

Microsoft Teams Phone System vs Other VoIP Platforms

Many VoIP platforms focus mainly on call handling. Microsoft Teams Phone is designed around collaboration. It brings calling, meetings, messaging, and file sharing into one platform.

Teams Phone typically offers:

  • Deep Microsoft 365 and Outlook integration
  • One place for all communication
  • Centralised user and device management
  • Built-in collaboration alongside telephony

Other VoIP platforms often focus more on:

  • Advanced call routing and IVR
  • Detailed PBX control
  • Telephony-first features

The best choice depends on whether your business values collaboration or complex call handling more.

Things to Know Before Choosing Microsoft Teams Phone System

Before choosing Teams Phone, consider:

  • Internet quality at every site
  • Ongoing licence costs per user
  • How calls integrate with your CRM
  • Who will manage number porting and 999 setup
  • Whether your call flows are simple or complex

These factors affect cost, reliability, and long-term suitability.

FAQs

Is Microsoft Teams Phone VoIP?

Microsoft Teams Phone runs on Teams VoIP over the internet, skipping traditional phone lines completely. Calls land in Microsoft’s cloud then hit the Teams app wherever staff work. Any connected device handles business calls without hassle.

Teams Phone System delivers full cloud PBX for UK businesses—no on-site hardware needed anywhere. Extensions, routing, auto attendants, voicemail, queues all work through Microsoft 365 admin. Complete PBX replacement without the maintenance headaches.

Teams Phone manages geographic and non-geographic UK numbers perfectly. Port existing BT or SIP numbers—customers dial exactly the same as always. Seamless PSTN/ISDN switchover without number changes.

Microsoft Teams Phone provides full UK-compliant 999 emergency calling. Location data gets configured so services find callers fast. Meets all regulatory and workplace safety standards completely.

Teams Phone System works across desktop, mobile, desk phones using single accounts. Business numbers stay the same everywhere staff go. Remote and hybrid working happens without call forwarding complications.

Desk phones remain completely optional with Teams VoIP. Teams app handles calls fine on computers or mobiles alone. Add Teams-certified handsets only when physical phones make sense.

Most UK business numbers port easily into Microsoft Teams Phone. BT lines, SIP trunks, hosted PBX numbers all transfer smoothly. Customers call exactly the same numbers after VoIP migration.

Teams Phone System uses Microsoft enterprise-grade security and encryption throughout. Call data stays protected in UK/EU data centres. Full GDPR compliance handles business security needs.

Microsoft phone system includes built-in queues and auto attendants ready to use. Digital receptionists route calls to right teams efficiently. High call volumes get handled professionally every time.

Teams Phone suits small and medium UK firms using Microsoft 365 perfectly. Professional phone features arrive without PBX hardware costs. Teams scale numbers and users easily as businesses grow.

Ready to Compare Your Options?

UK business phone choices now span Teams Phone, 3CX, RingCentral, hosted PBX—each matching specific team sizes and workflows.

Compare Phone Systems (CPS) delivers side-by-side clarity on costs, Microsoft 365 integration, call handling limits, and PSTN readiness.

Three critical wins:

  • Avoid overpaying for unused features
  • Match platforms to your actual operations
  • Secure long-term scalability and value

CPS eliminates guesswork, ensuring the right telephony fit first time.