---
title: "Microsoft Teams Phone review: pricing, pros and cons"
description: "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."
canonical: "https://saaskly.com/category/voip/microsoft-teams-phone"
last-updated: "2026-09-28"
---

# Microsoft Teams Phone review: pricing, pros and cons

> Saaskly verdict: **3.9/5**. 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.

- Category: [VoIP](https://saaskly.com/category/voip.md)
- Vendor website: https://www.microsoft.com/en-gb/microsoft-teams/microsoft-teams-phone
- Last updated: 2026-09-28

## Pros and cons

**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

Month-to-month price first (what you pay without committing), then the annual-commit rate.

- **Teams Phone Standard (add-on)**: £9.24/mo month-to-month; £7.70/mo on an annual commitment (month-to-month costs 20% more)
  - Includes: 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)
  - Includes: 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)
  - Includes: 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)
  - Includes: 3,000 domestic or 600 international minutes; monthly-term figure derived (+20%)

Minimum commitment: **£92.40** (£7.70/mo × 1 seat × 12 months).

## Specification

| Attribute | Value |
| --- | --- |
| 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 |
| Deployment | Cloud PBX |
| Sales model | Direct |
| Public API | Yes |
| MCP server | No |
| Emergency 911/999/112 | Yes |
| Integrations | Microsoft 365, Dynamics 365, Power Automate, Salesforce (partner CTI), HubSpot (partner CTI) |
| Commitment for annual rate (months) | 12 |

*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.

## Our review

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.

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Researched and drafted with AI assistance; reviewed and approved by Dariia Panchenko. See https://saaskly.com/ai-transparency.md and https://saaskly.com/editorial-policy.md.

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