Table of contents
- What is Teams Calling for business?
- How does Teams Calling benefit your business?
- Is Teams Calling better than a separate business phone system?
- Setting up Teams Calling for business — what’s involved
- What to look for in a Teams Calling provider
- FAQ
If your business already runs on Microsoft 365, there’s a good chance Teams is where most of the day happens, chat threads, video meetings, shared files. Phone calls are often the one thing still living outside that world, handled through a separate desk phone, a different app, or a legacy PBX that doesn’t talk to anything else your team uses.
Teams Calling for business closes that gap. It adds proper phone calling, dialling out to landlines and mobiles, receiving inbound calls on your business number, directly into the Teams app your staff already have open. Rather than treating your phone system and your collaboration tools as two separate purchases, Teams Calling folds one into the other, which for a lot of Australian small businesses simplifies things considerably.
This guide walks through what Teams Calling actually is, how it changes day-to-day operations for a small team, and what setup and provider choices matter most, especially the part Microsoft doesn’t handle itself: connecting Teams to the actual phone network.
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What is Teams Calling for business?
Teams Calling is the phone system layer added on top of Microsoft Teams, so the app can be used to make and receive calls to and from ordinary phone numbers, not just Teams-to-Teams calls between colleagues. Once set up, a staff member can dial a client’s mobile number from inside Teams the same way they’d start a chat message, and inbound calls to your business number ring through to Teams on their laptop, mobile, or a compatible desk phone.
The important detail is that Microsoft Teams itself doesn’t connect to the public phone network. To actually place and receive real calls, Teams needs to be paired with a calling plan or SIP trunk supplied by a telecom provider. That’s the piece a local provider adds, connecting your existing business number (or a new one) into Teams so it functions as a genuine phone system, not just an internal messaging tool with a calling icon.
How does Teams Calling benefit your business?
Fewer tools, less switching. Staff already spend hours a day in Teams. Adding calling means they’re not toggling between a chat app and a separate phone system app to do what is functionally the same job, talking to someone.
Calls aren’t tied to a desk. A staff member can answer the business line from their laptop at home, their mobile on the road, or a Teams-certified handset at their desk, useful for hybrid and multi-location teams.
One admin console, not two. IT already manages Microsoft 365 for most small businesses. Adding calling through the same platform means one less separate system, with its own logins and billing, to maintain.
Shorter onboarding for new staff. Because most new hires arrive already familiar with Teams, learning to make and receive calls through it takes far less time than training on a standalone phone system.
Context stays together. A call with a client sits in the same thread as their chat history and shared documents, rather than being logged in a completely separate system with no connection to the rest of the conversation.
Is Teams Calling better than a separate business phone system?
| Teams Calling | Separate business phone system (cloud PBX) | |
|---|---|---|
| Best suited to | Businesses already using Microsoft 365 daily | Businesses wanting phone-first, purpose-built calling features |
| Staff familiarity | High, staff already use the app | Requires learning a new interface |
| Connecting to the phone network | Needs a calling plan or SIP trunk added on | Included as part of the service |
| Call-centre style features | Available but often less deep | Typically stronger (queues, detailed analytics, recording) |
| Multi-site call routing | Possible with the right configuration | Often more purpose-built for this |
| IT overhead | Ties into existing Microsoft 365 admin | Independent system to manage separately |
There’s no universal winner here. If your team is already deeply reliant on Teams for daily communication, Teams Calling removes a redundant system rather than adding one. If your business needs heavier call-handling, multi-site overflow routing, detailed reporting, dedicated call queues, a standalone cloud PBX is likely to serve those requirements more thoroughly.
Read more: Microsoft Teams Phone System: Your Business Line →
Setting up Teams Calling for business — what’s involved
- Licensing check – confirm your Microsoft 365 plan includes Teams Phone, or that the correct add-on licence is applied to each user who needs calling.
- Choose your connection method – a calling plan or SIP trunk connects Teams to the public phone network, the right choice depends on your call volume and existing infrastructure.
- Number porting – your existing business number is transferred across so customers keep dialling the number they already know.
- Call routing setup – decide how inbound calls are handled, straight to a person, an auto-attendant, or a call queue for a small team fielding shared enquiries.
- Testing before cutover – calls are tested through Teams before any old system is switched off, so there’s no gap in service.
- Team walkthrough – a short briefing covering making calls, transferring, and checking voicemail inside Teams, generally a quick session given most staff already know the app.
What to look for in a Teams Calling provider
1. Confirmation your Microsoft 365 plan supports it. Check your current licence tier before assuming Teams Calling is included as-is.
2. A clear explanation of connection options. Ask whether a calling plan or SIP trunk fits your call volume better, and get the cost difference explained plainly.
3. Managed number porting. Confirm your existing number transfers with no service gap, and get a firm timeline before any old line is disconnected.
4. A plan for internet outages. Since calls run over your internet connection, ask whether calls can automatically forward to a mobile if it drops.
5. Local support that understands both sides. Look for a provider whose team understands Teams administration and telephony, not just one or the other, so issues get resolved without being bounced between vendors.
FAQ
Can I make regular phone calls from Microsoft Teams?
Yes, once Teams Calling is set up with a calling plan or SIP trunk connected, you can call and receive calls from any landline or mobile number directly inside Teams.
Do I need a special licence for Teams Calling?
Usually yes. Calling capability typically requires a specific Microsoft 365 licence tier or add-on beyond a standard Teams subscription, so it’s worth checking your current plan first.
Can I keep my existing business number with Teams Calling?
Yes. Your number is ported across during setup, so customers keep dialling the same number they always have.
What happens to calls if the internet goes down?
Since Teams Calling relies on your internet connection, an outage will affect calls unless a failover option, such as forwarding to a mobile, has been configured beforehand.
Is Teams Calling suitable for a small business with a shared reception line?
Yes, call queues and auto-attendants can be configured so shared enquiry lines still get routed and answered properly, even with a small team.
How much training do staff need to use Teams Calling?
Minimal, if they’re already using Teams for chat and meetings. Most staff pick up calling within a short walkthrough rather than needing formal training.
One app for chat, meetings, and calls
For a business already committed to Microsoft 365, Teams Calling removes a separate phone system from the daily mix rather than adding another tool to manage. Setting it up properly, right licensing, the right connection method, and a clean number port, is what makes the difference between a smooth switch and a frustrating one.
Nexgen has helped Australian businesses set up and migrate phone systems, including Teams-based calling, for 17 years, with local support and managed number porting from start to finish. Get in touch with our team or call 1300 020 402 to find out whether Teams Calling is the right fit for your business.
