If your Perth business already uses Microsoft 365 and Teams for internal communication, you may be paying for a separate phone system - a traditional PBX, SIP trunk, or third-party VoIP platform - that you no longer need. Microsoft Teams Phone consolidates your phone system into Teams, giving you full PSTN calling from your laptop, mobile, or desk handset through the same app your team already uses every day.
What Is Microsoft Teams Phone?
Microsoft Teams Phone (formerly known as Teams Phone System or Cloud PBX) is the add-on that gives Teams real-world telephone capability - the ability to call and receive calls from standard Australian phone numbers (03, 04, 08 numbers).
Without Teams Phone, Teams can only call other Teams users. With Teams Phone, Teams becomes a complete business phone system: you get a phone number, your team can make and receive external calls, and you can replace your existing phone infrastructure entirely.
Teams Phone is not a third-party integration - it is built into Microsoft 365 and managed from the same admin centre as your email and identity.
How Teams Phone Works in Practice
When Teams Phone is set up, staff can:
- Make and receive calls to/from standard Australian phone numbers directly in Teams on their laptop or mobile
- Transfer calls, put callers on hold, and access voicemail - all through Teams
- Use a Teams-certified desk handset if they prefer a physical phone (Yealink, Poly, and other manufacturers make Teams-native handsets)
- Have calls ring simultaneously on their laptop and mobile, so they never miss a call when away from their desk
- See who is calling before answering, access call history, and return missed calls with one click
From a business perspective:
- Auto attendants replace manual reception - callers hear a menu ("Press 1 for Sales, Press 2 for Support") and are routed automatically
- Call queues let multiple staff answer calls from a shared number - useful for support teams, reception, or any shared function
- Business hours and after-hours routing direct calls differently outside working hours
- Call recording (with compliance features) for regulated industries
- Voicemail transcription delivers voicemail as text directly to Teams
What You Need to Set It Up
Three components are required:
1. Microsoft Teams Phone licence
Teams Phone Standard is a Microsoft 365 add-on (~$12/user/month). Alternatively, Microsoft 365 Business Voice bundles Teams Phone with a calling plan for a single licence.
Teams Phone is also included with Microsoft 365 E5 - if you are on E5, you may already have it.
2. A calling plan or direct routing
To connect Teams to the public telephone network (PSTN), you need either:
- Microsoft Calling Plan - Microsoft provides Australian phone numbers and carries the calls. Simpler to set up. Monthly fee per user includes a pool of minutes. Not all Australian number types are available.
- Operator Connect - Australian telcos (such as Telstra, Optus, or specialist VoIP providers) connect their network to Teams directly. You get Australian numbers from your existing telco, ported or new. Good option if you want to keep an existing Australian telco relationship.
- Direct Routing - you connect Teams to any SIP-compatible PBX or trunking provider via a Session Border Controller (SBC). Most flexible option, used when you have complex existing infrastructure or need carrier features Microsoft Calling Plans do not support.
For most Perth SMBs moving away from a traditional phone system, Operator Connect with an Australian telco is the cleanest solution - you keep or port your existing numbers, and the setup is straightforward.
3. Number porting
Your existing 08 or 1300 numbers can be ported to Teams Phone so clients who already have your number reach you without interruption. Number porting in Australia typically takes 2–4 weeks and requires coordination with your current carrier.
Teams Phone vs Traditional PBX
For Perth businesses with an ageing on-premise PBX (NEC, Panasonic, Avaya), Teams Phone is a compelling replacement:
- No hardware to maintain - traditional PBX requires physical hardware, ISDN lines, and specialist maintenance. Teams Phone is cloud-based with no on-site hardware required (unless you want desk handsets).
- Works from anywhere - staff take their Teams number with them. Working from home or visiting a client, they have the same number and the same experience.
- Single app - consolidating calling into Teams eliminates the overhead of a separate phone system app, softphone client, or desk phone.
- Lower running costs - no ISDN line rental, no PBX maintenance contract, and no per-minute rates for calls between staff.
Teams Phone vs Standalone VoIP
Many Perth businesses use third-party VoIP systems (3CX, RingCentral, 8x8, or an Australian-hosted PBX). Teams Phone competes with these when:
- You are already paying for Microsoft 365 - adding Teams Phone is often cheaper than a separate VoIP platform
- You want a single vendor and single app for communication
- Your team is already spending most of their time in Teams
Standalone VoIP platforms may still make sense for businesses with complex call centre features, specific hardware requirements, or Australian telco relationships that are difficult to replicate in Teams Phone.
Migration Planning
Moving from a traditional phone system to Teams Phone is a project, not a setting change. Key steps:
- Audit your current phone infrastructure - how many numbers, what line types, what PBX features are used
- Map each number and user to the Teams Phone equivalent
- Decide on calling plan type (Microsoft Calling Plan, Operator Connect, or Direct Routing)
- Initiate number porting well in advance (2–4 weeks minimum)
- Configure auto attendants, call queues, and business hours routing
- Pilot with a subset of users before full cutover
- Train staff on Teams calling - it is intuitive, but staff should know how to transfer, hold, and access voicemail
Frequently Asked Questions
Can I keep my existing phone number if I switch to Teams Phone?
Yes, your existing 08 or 1300 numbers can be ported across so callers who already have your number reach you without any interruption. Porting in Australia typically takes two to four weeks and needs to be coordinated with your current carrier, so it's worth starting early rather than leaving it to the last minute.
What do I actually need to set up Teams Phone?
Three things: a Teams Phone licence (around $12/user/month as an add-on, or included in some bundles), a way to connect to the phone network which is usually a calling plan or an Operator Connect arrangement with an Australian telco, and number porting if you're bringing across existing numbers.
Do I still need physical desk phones with Teams Phone?
Not necessarily, most staff can make and receive calls straight from their laptop or the Teams mobile app, with calls able to ring on both at once. If some staff prefer a physical handset, Teams-certified desk phones from brands like Yealink or Poly work directly with the system.
Is Teams Phone cheaper than a standalone VoIP system?
For businesses already paying for Microsoft 365, it's often cheaper than running a separate VoIP platform since you're not paying for two systems and staff only need to learn one app. Standalone VoIP can still make more sense for businesses with complex call centre needs or specific hardware requirements that Teams Phone doesn't cover well.
We deploy Microsoft Teams Phone for Perth businesses - from number porting and calling plan setup to auto attendants and staff training.
Microsoft 365 Services →Ready to replace your Perth business phone system?
Call 0433 087 091 - we'll assess your current setup and design a Teams Phone migration that suits your business.
Get a Teams Phone QuoteFor related reading, see our guides to Microsoft Teams Setup Guide for Perth Businesses and Microsoft 365 Security for Perth Businesses.