Microsoft Teams Phone
The obvious phone system if you already live in Microsoft 365: cheap on paper, with the real cost hiding in licence stacking and the PSTN route you choose.
Teams Phone turns Teams into the PBX. It is sold as an add-on: Teams Phone Standard (£7.70 per user per month, annual) on top of a Teams licence, and since Microsoft's EU-driven unbundling in November 2025, new commercial customers buy Microsoft 365 without Teams and add Teams Enterprise separately, so the stack is M365 + Teams + Teams Phone. Then you need a PSTN route: Microsoft's own bundles ("Teams Phone with Calling Plan", £9.20 pay-as-you-go, £13.10 domestic, £26.10 domestic and international), Operator Connect (a carrier plugs in) or Direct Routing (your own SBC and SIP trunk). Those prices are for an annual subscription; Microsoft also offers month-to-month terms at a premium (roughly 20% under NCE) and monthly billing of an annual term at +5%. Published prices are modest, but the all-in cost with M365, Teams, calling and devices typically lands at £15–30+ per user, and native contact-centre and CRM capability is thin without partner add-ons.
Automation runs through Microsoft Graph (call records with change-notification webhooks) and PowerShell: capable, but a long way from a phone-native API. Emergency calling uses a registered static address per user; dynamic location routing is US/Canada only. Data stays in your M365 tenant geo, which is a genuine plus for UK residency. Trustpilot has no Teams-specific page, so no score is recorded.
Pros
- +Zero-friction for Microsoft 365 organisations
- +Flexible PSTN options: Calling Plan, Operator Connect or Direct Routing
- +UK data residency via the M365 tenant geo
Cons
- −Stacked licensing (M365 + Teams + Phone + calling + devices) obscures the true per-user cost
- −No dynamic 999 routing outside North America
- −Thin native call-centre and CRM capability without partner add-ons
Pricing
Minimum commitment: £92.40 (£7.70/mo × 1 seat × 12 months). The least you can spend before walking away; excludes numbers, minutes and add-ons.
Teams Phone Standard (add-on)
£9.24/mo · month-to-month
£7.70/mo on an annual commitment
Month-to-month costs 20% more
- ✓Per user; separate Teams licence required. Month-to-month figure is an estimate: the annual rate +20% (Microsoft NCE monthly-term premium). Microsoft does not publish it in GBP
With Pay-as-you-go Calling
£11.04/mo · month-to-month
£9.20/mo on an annual commitment
Month-to-month costs 20% more
- ✓Metered outbound; monthly-term figure derived (+20%)
With Domestic Calling Plan
£15.72/mo · month-to-month
£13.10/mo on an annual commitment
Month-to-month costs 20% more
- ✓3,000 UK minutes pooled, number included; monthly-term figure derived (+20%)
Domestic & International
£31.32/mo · month-to-month
£26.10/mo on an annual commitment
Month-to-month costs 20% more
- ✓3,000 domestic or 600 international minutes; monthly-term figure derived (+20%)
Specifications
| Rating | 3.9 |
| Pricing and plans | |
|---|---|
| Month-to-month (entry plan) | £9.24/mo |
| Annual commit, per month | £7.70/mo |
| Monthly premium | 20% |
| Minimum commitment* | £92.40 |
| Min seats | 1 |
| Commitment for annual rate (months) | 12 |
| Features | |
| Deployment | Cloud PBX |
| Sales model | Direct |
| Integrations and developers | |
| Public API | ✓ |
| MCP server | No |
| Integrations | Microsoft 365, Dynamics 365, Power Automate +2 |
| Support | |
| Emergency 911/999/112 | ✓ |
*How we calculate minimum commitment. Headline per-user prices hide the real cost of trying a platform. Total cost of ownership is licence × seats × term, plus usage, add-ons, setup fees and any early-exit charges. Our "minimum commitment" figure is the floor of that: the entry plan's committed rate × the minimum seats the vendor will sell × the months you must commit to (one month at the month-to-month rate where there is no commitment; the licence price where it is sold per year). It deliberately excludes usage, add-ons and prerequisite licences, so your real first bill will be higher, but never lower than this. For Teams Phone the excluded prerequisites are the Microsoft 365 and Teams licences.
Researched and drafted with AI assistance; reviewed and approved by Dariia Panchenko. How we use AI
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