What is Teams Phone

Teams Phone is Microsoft's technology for enabling call control and Private Branch Exchange (PBX) capabilities in the Microsoft 365 cloud with Microsoft Teams.

Teams Phone works with Teams clients and certified devices. Teams Phone allows you to replace your existing PBX system with a set of features directly delivered from Microsoft 365.

Calls between users in your organization are handled internally within Teams Phone, and never go to the Public Switched Telephone Network (PSTN). This applies to calls between users in your organization located in different geographical areas, removing long-distance costs on these internal calls.

For making external calls, Teams Phone provides add-on options for connecting to the PSTN. For more information about voice solutions and PSTN connectivity options, see Plan your Teams voice solution and Connect to the PSTN.

Teams Phone features

With Teams Phone, users can use Teams to place and receive calls, transfer calls, and mute or unmute calls. Teams Phone users can click a name in their address book, and place Teams calls to that person. To place and receive calls, Teams Phone users can use their mobile devices, a headset with a laptop or PC, or one of many IP phones that work with Teams.

Teams Phone administrators can manage calling options and settings from the same console used for messaging, collaboration, and so on.

For more information about Teams Phone features, see Here's what you get with Teams Phone.

Connect to the Public Switched Telephone Network (PSTN)

For external calling, Teams Phone can be connected to the PSTN in one of several ways:

  • Purchase a Microsoft Calling Plan (domestic or domestic and international). Microsoft Calling Plan is an all-in-the-cloud solution with Microsoft as your PSTN carrier. For more information, see Teams Phone and Calling Plans.

  • Use your existing telephony infrastructure for on-premises PSTN connectivity.

    You can connect your on-premises telephony infrastructure to Teams Phone by using Operator Connect Calling or Direct Routing.

For more information about all PSTN Connectivity options, see PSTN connectivity options.

Teams Phone with services

Teams Phone can be used for services and voicemail, such as:

  • Auto attendants - Auto attendants can be used to create a menu system for your organization that lets external and internal callers move through the system to locate and place or transfer calls to company users or departments in your organization. See What are Cloud auto attendants?.

  • Call queues - Call queue greetings can be used when someone calls in to a phone number for your organization. These greetings include the ability to automatically put the calls on hold and the ability to search for the next available call agent to handle the call while the people who call are listening to music on hold. You can create single or multiple call queues for your organization. See Create a Cloud call queue.

  • Voicemail - Cloud Voicemail is automatically set up and provisioned for all Teams users. See Set up Cloud Voicemail.

For more information about features, see Here's what you get with Teams Phone. If you're ready to get started, see Set up Teams Phone in your organization.