UK businesses are facing a real shake up in call handling right now hybrid work feels like the new every day, offices are getting smaller by the day, and with the 2027 PSTN switch-off closing in, traditional landlines are quickly becoming more of a liability than a reliable solution.
Enter Microsoft Teams Phone System, a smart, no-nonsense upgrade that gets your team calling seamlessly. Forget wrestling with desk phones or outdated PBX boxes; calls happen right inside Teams, whether folks are at their desks, home, or dashing between sites. For many organisations, it represents a practical shift towards modern, flexible calling.
This guide breaks down Microsoft Teams Phone System setup step by step, flags what you need upfront, and helps you pick the perfect calling option without the overwhelm, so your business stays ahead of the curve
What Is Microsoft Teams Phone System?
Teams Phone System brings cloud-based VoIP to life. It morphs Teams into a complete business phone setup.
Replace separate phone hardware. Manage internal calls, customer queries, voicemail, flows—all in your everyday chat and meeting tool. In essence, how to set up Teams phone system delivers:
- PBX and desk phone replacements
- Internet-routed VoIP calls
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Native integration with Microsoft 365
For 365 users, complexity vanishes; communication centralizes effortlessly. For example, sales teams can answer business calls directly within Teams, even during meetings.
Why UK Businesses Are Moving to Microsoft Teams Phone
The 2027 UK PSTN switch-off forces action. Copper landlines die off completely businesses must go digital or risk blackout. Teams Phone shines here; it’s pure VoIP from day one, tied to Microsoft’s future proof roadmap. No scrambling for interim fixes.
Hybrid work flips the script too. Desk phones gather dust when teams bounce between office, home, sites. How to set up Microsoft Teams Phone System lets one business number follow everywhere laptop, mobile. Fewer misses; fits fluid schedules without location locks.
Costs seal the deal. Legacy PBX? Hardware bills, maintenance traps, scale pains. Teams swaps that for cloud pay-as-you-go slash overheads, manage easy. UK firms modernize smartly without the bloat.
How Microsoft Teams Phone System Works
Teams forms the call hub. Launch or pick up via desktop, mobile, or certified desk phones.
Team internals? VoIP only. Mobiles or landlines outside? PSTN connection required. It manages voicemail, transfers, queues, attendants behind the curtain. Three PSTN links enable external reach; details follow soon.
Ever wonder why this beats legacy? No cabling woes; scales instantly.
What You Need Before Setup
Double-check essentials first. Oversights spark delays every time.
- Active Microsoft 365 or Teams licenses per user
- Teams Phone licenses for calling users
- Stable internet—quality hinges here
- Laptops, mobiles, or Teams desk phones
- PSTN for external in/out calls
Prep these; skip future headaches. Run Teams Network Tool too—flags bandwidth gaps early.
Turn Microsoft Teams into your business phone system
Step-by-Step to Set Up Microsoft Teams Phone System
UK businesses are preparing to move away from traditional landlines ahead of 2027. How to set up Microsoft Teams Phone System starts here five clear steps that unlock cloud calling fast.
Step 1: Assign Teams Phone Licences
Jump into Microsoft 365 Admin Centre first thing. Pick users needing calls; slap on Teams Phone licences right there. Telephony lights up in Teams once they sync.
Overlooked way too often which stalls everything cold. Bulk CSV handles dozens; wait 15-30 minutes, then check the Calls tab.
Step 2: Choose a PSTN Calling Option
Setup Teams phone system skips external lines by design. Bridge to mobiles and landlines three ways:
- Microsoft Calling Plans—Microsoft runs numbers and minutes
- Operator Connect—certified telcos like BT plug in direct
- Direct Routing—SBC links your carrier
Each fits business scale; details unpack below. Pilot one before committing.
Step 3: Get and Assign Phone Numbers
Option locked? Grab numbers next—fresh +44s or Porting takes 12-30 business days; start early with BT/Ofcom. Assign smartly to:
- Single users
- Whole departments
- Call queues or auto attendants
Plan allocations now; reshuffles waste time later. Add emergency addresses per number.
Step 4: Configure Call Settings in Teams Admin Centre
Teams Admin Centre now. Dial in organization-wide rules like:
- Calling and voice policies
- Emergency calling setups
- Call queues and auto attendants
- Delegation and routing rules
Busy rushes? After-hours? Unavailable users? All covered seamlessly. IVR trees route “press 1 for sales” effortlessly.
Step 5: Set Up Voicemail, Call Forwarding and Business Hours
Final polish time. Tweak voicemail greetings, forwarding rules, business hours—callers land right, never hang in limbo during busy spells or off-hours.
Dial *298 in Teams for custom prompts; set simultaneous ring to mobile. Link hours to calendars—after 5pm? Auto route to attendant. Setup Teams phone system feels complete; test loops catch glitches
Microsoft Teams Phone Calling Options Explained
No rival systems here just PSTN bridges. Control and flex decide your pick.
Microsoft Calling Plans
Microsoft hands over numbers, tracks minutes.
Pros: Deploys day one, zero vendor hassle, simple tweaks
Cons: Gets rigid and costly past 50 users
Pricing varies based on usage and region standard.
Best for: Small businesses craving quick wins
Operator Connect
Microsoft-certified providers beam PSTN straight to Teams.
Pros: Local UK numbers, 99.99% uptime, light tech lift
Cons: Ties to operator reach
Vodafone, BT lead 2025 growth.
Best for: Easy with some stretch room over Plans
Direct Routing
Session Border Controller (SBC) hooks your carrier or legacy gear.
Pros: Total command, reuse numbers and lines
Cons: Needs SBC skills (AudioCodes), steady upkeep
SBA adds branch fallback.
Nail these steps; learn how to set up Microsoft Teams Direct Routing in our detailed Teams Phone System guide to deliver hybrid-ready calls without the old headaches.
Best for: Big ops or tangled setups
Which Calling Option Is Best for Your Business?
No one-size-fits-all winner here. Pick hinges on your team’s size, setup complexity, and expansion roadmap get it right early to dodge costly switches down the line.
Small UK businesses: Go Microsoft Calling Plans or Operator Connect. Quick launches, low fuss; handles 10-50 users without vendor drama or deep tech skills.
Growing companies: Operator Connect strikes the sweet spot. Blends hands-off ease with scalability perfect for 50-200 seats eyeing UK numbers and solid SLAs from BT or Vodafone.
Enterprises or complex setups: Direct Routing rules. Total control keeps existing carriers, custom SBCs (like AudioCodes); ideal for 200+ users, branches, or hybrid PBX ties.
Wrong early choice? Expect migration fees or rework. Pilot test; match to needs for setup Teams phone system success.
Not sure which calling option fits your business?
How to Use Microsoft Teams Phone System Day to Day
Once deployed, Microsoft Teams Phone integrates seamlessly into the familiar Teams interface. Employees access the Calls tab to initiate or receive calls with ease. Essential functions like hold, transfer, and call parking require just a few clicks.
Voicemail appears right in Teams no hunting separate systems. That business number works across laptops, mobiles, even desk phones. Hybrid teams stay connected professionally, no matter the location.
Common Microsoft Teams Phone System Setup Mistakes
Licensing trips up deployments most. Wrong Microsoft 365 or Teams Phone assignment? Calling vanishes quietly users can’t dial out.
Ports take weeks, not days; plan ahead. Networks get skipped too weak bandwidth tanks quality. Cost-only picks ignore growth; migrations hurt later.
Microsoft Teams Phone System vs Traditional Phone Systems
Legacy setups tie to lines, hardware, constant fixes. Scaling costs soar; hybrid work struggles with desk-bound design.
Teams Phone shifts to cloud VoIP calls anywhere with internet. Ties straight into Microsoft 365. The 2027 PSTN end? It’s ready, Removing The limitation of traditional Phones.
Related FAQs:
How long does it take to set up Microsoft Teams Phone System?
Small teams grabbing new numbers can often knock out the how to set up Microsoft Teams Phone System process in a day or two if everything lines up. Porting old numbers or tweaking queues and attendants? That stretches things out a bit. Smart planning upfront especially on ports keeps delays at bay.
Do I need physical desk phones to use Teams Phone?
Nope, desk phones aren't a must. Most businesses run Teams Phone straight from desktop or mobile apps without a hitch. Handsets pop up mainly where folks want that classic feel or in shared office spots.
Is Microsoft Teams Phone a VoIP system?
Yes it's pure VoIP, sending all calls over the internet instead of old phone lines. For external mobiles or landlines, it just bridges via PSTN. Simple setup keeps things smooth.
Will Microsoft Teams Phone work after the UK PSTN switch-off?
Spot on for post-2027. Teams Phone skips copper lines entirely for cloud VoIP, so it hums along fine once PSTN retires. Long-term landline swap without the worry.
Can I keep my existing business phone numbers?
Most times, yes port them into Teams Phone through Operator Connect or Direct Routing. Timelines shift by provider though, so kick off setup Teams phone system transfers early to dodge downtime.
Is Microsoft Teams Phone suitable for small businesses?
Perfect match for small outfits, particularly Microsoft 365 users. Straightforward rollout, easy day-to-day tweaks, calls from anywhere. Calling Plans or Operator Connect make it a no-brainer start.
Conclusion
Microsoft Teams Phone System is the modern solution UK businesses need as the 2027 PSTN switch-off approaches. By moving to a cloud-based VoIP system, organisations can consolidate calls, chats, and meetings into a single platform, reduce hardware costs, and support hybrid working seamlessly. Setting it up is straightforward if you prepare licences, devices, and PSTN options in advance, choose the right calling plan for your business size, and configure call settings carefully. With Teams Phone, calls become flexible, reliable, and future proof, giving your teams the freedom to communicate from anywhere while keeping your business ahead of the curve.
Planning for the 2027 PSTN switch-off?
