Microsoft Teams Calling Features | What's Possible with Teams 365
Microsoft Teams Calling includes auto-attendant, call queues, voicemail with transcription, call transfer, call analytics, and direct routing to the PSTN. With Teams Phone licences from £6–£12 per user per month and Calling Plans from £5–£9, businesses get a full-featured VoIP system embedded within their existing Microsoft 365 environment.
Nathan Hill-Haimes
Technical Director
What Can Microsoft Teams Calling Actually Do?
Microsoft Teams Calling — properly called Teams Phone when external calling is enabled — is a complete business telephone system embedded within Microsoft 365. It goes well beyond simple call-and-answer functionality, offering a feature set that competes directly with dedicated hosted VoIP platforms. This guide covers the full feature set, what is included in the base Teams Phone licence, and what requires additional investment.
Core Calling Features
Auto-Attendant
Teams Phone auto-attendants answer inbound calls with a custom greeting and route callers based on dial input or speech recognition. Multiple attendants can be configured — for example, a main company number, a direct sales line, and an after-hours attendant — each with separate greetings, routing rules, and holiday schedules. Auto-attendants are free to configure and can be assigned direct phone numbers.
Call Queues
Call queues distribute inbound calls across a group of agents (Teams users). When all agents are busy, callers are placed in a queue with configurable hold music and estimated wait announcements. Queue overflow and timeout rules determine what happens when wait thresholds are exceeded. Call queues are essential for customer-facing teams handling multiple simultaneous inbound calls.
Voicemail with Transcription
Teams Phone voicemail includes automatic transcription — voicemail messages appear as readable text in the Teams conversation thread. Users can read, listen to, or share voicemail without leaving the Teams interface. Voicemail is available across all devices the user has Teams installed on.
Call Transfer
Attended transfer (speak to colleague before transferring) and blind transfer (direct transfer without consultation) are both supported. Transfer to external numbers is also available, enabling calls to be transferred to a mobile or a non-Teams colleague.
Call Park and Retrieve
A call can be parked — placed on hold in a shared holding area — and retrieved by any user within the organisation. Useful for reception environments where calls need to be handed off to the correct person without a direct extension transfer.
Advanced Calling Features
Call Recording
Convenience call recording (user-initiated) is available with Teams Premium. Compliance recording (automatic, tamper-evident, mandatory) requires a Microsoft-certified compliance recording partner. This is one area where Teams Phone differs from many hosted VoIP platforms — recording is not in the base licence.
Call Analytics and Reporting
The Teams Admin Centre provides call quality dashboards, per-user call history, and Real Time Analytics showing active calls. Microsoft 365 Power BI integration enables custom call reporting. For contact centre environments, more detailed analytics require additional Microsoft tooling or a certified CCaaS solution.
Direct Routing
Direct Routing connects Teams Phone to the PSTN via a third-party SBC (Session Border Controller) and SIP trunk. This provides flexibility in carrier selection, call cost management, and the ability to maintain existing phone numbers and carrier contracts alongside Teams Phone.
Operator Connect
Operator Connect is a managed PSTN connectivity option where Microsoft-certified carriers (including BT, Gamma, and others) connect their network directly to Teams Phone via Microsoft's cloud. It simplifies SIP trunk management compared to Direct Routing while retaining carrier choice.
Collaboration-Integrated Calling
A distinguishing feature of Teams Phone is its integration with the broader Teams collaboration platform:
- Presence awareness: Call status (on a call, away, do not disturb) is visible across the organisation in Teams
- Calling from chat: One-click escalation from a Teams chat to a voice or video call
- Meeting to call: Seamless transition between a Teams meeting and a private call
- Contact integration: Teams directory, Outlook contacts, and CRM contacts all accessible during calls
- Teams Rooms integration: Meeting rooms can be equipped to make and receive Teams Phone calls
Devices and Endpoints
Teams Phone works across the Teams desktop client (Windows and Mac), the Teams mobile app (iOS and Android), and Teams-certified IP phones from Yealink, Poly, and others. Teams-certified devices provide native integration with the calling features — answering calls, holding, transferring — without opening the Teams app on a PC.
Licensing Summary
Base Teams Phone licence: approximately £6–£12/user/month (depending on the Microsoft 365 base plan). Microsoft Calling Plans: approximately £5–£9/user/month for domestic calling. Teams Premium (for convenience recording and advanced meetings): approximately £7/user/month additional. Total cost for a Teams Phone user with calling plan: approximately £11–£21/user/month depending on configuration.
AMVIA helps businesses assess Teams Phone licensing requirements, configure the full feature set, and deploy across all user devices — as a fully managed Teams Phone deployment service.
Get Teams Phone Fully Deployed for Your Business
AMVIA handles the complete Teams Phone setup — licensing, calling plans, auto-attendant, number porting, and user training.
Frequently Asked Questions
A Teams Phone licence enables external PSTN calling for a Teams user. It includes auto-attendant configuration, call queue participation, voicemail with transcription, call analytics, and all the standard call handling features (transfer, hold, park). A separate Calling Plan or Direct Routing setup is required to actually connect to the PSTN — the Teams Phone licence alone does not include call minutes or phone numbers. <strong>Microsoft Teams Phone has surpassed 26 million PSTN users worldwide</strong> as of December 2025 — up from 20 million in April 2024, representing 30% growth in 20 months. <em>(UC Today)</em>
Convenience call recording (user-initiated) requires Teams Premium. Compliance recording (automatic and mandatory) requires a Microsoft-certified compliance recording partner. Call recording is not included in the base Teams Phone licence, which is a notable difference from some hosted VoIP platforms that include recording in standard plans. <strong>6 million new Teams Phone PSTN users were added in 8 months</strong> (April 2024 to December 2025), confirming Teams as one of the largest cloud PBX platforms globally. <em>(UC Today)</em>
Teams Phone auto-attendants are configured in the Teams Admin Centre as Resource Accounts. They can be assigned direct phone numbers, have custom greetings (text-to-speech or uploaded audio), and route callers based on key press or speech recognition. Multiple attendants can be nested — for example, a main menu routing to department sub-menus. Holiday schedules and after-hours routing are supported. <strong>80 million Teams users</strong> are estimated to have some form of calling capability enabled (including non-PSTN), but only around 6.25% have external PSTN calling enabled. <em>(UC Today)</em>
Yes. Teams Phone call queues distribute inbound calls across a configured group of agents (Teams users). When all agents are busy, callers wait in queue with hold music and optional position announcements. Overflow and timeout rules manage situations where the queue fills or wait time is exceeded. For basic customer service operations, Teams Phone call queues are sufficient; larger contact centres may need a certified CCaaS add-on. <strong>Zoom Phone has reached 7 million paid seats</strong> (as of Q3 2024) — a growing PSTN calling competitor to Microsoft Teams Phone in the UK market. <em>(Grand View Research)</em>
Yes. Teams-certified IP phones from Yealink, Poly, and others work natively with Teams Phone. These phones run Teams-mode firmware that provides native calling, presence, and Teams interface access directly on the phone display. Standard SIP phones can also be used via Direct Routing, but native Teams integration is only available on certified devices. <strong>Microsoft Teams Phone reached 26 million PSTN users</strong> worldwide by end of 2025 — up from 20 million in April 2024, a 30% jump in under two years. <em>(The VoIP Shop)</em>
Teams Phone is the licence that enables PBX functionality (auto-attendant, call queues, external calling capability) for a Teams user. Microsoft Calling Plans are the PSTN connectivity add-on that provides a UK phone number and inclusive call minutes. Both are required together for a complete Teams calling setup. Direct Routing can replace the Calling Plan for businesses that want to use a third-party SIP carrier.
Related Reading
What Is Microsoft Teams Calling? | Plain English Guide
A clear guide to what Teams Calling is and how it works for UK businesses.
Microsoft Teams Calling Plans | What Are They?
How Microsoft Calling Plans work, what they cost, and when Direct Routing is better.
Microsoft Teams Phone System | Included with 365?
What Teams Phone is, what it costs, and how it fits within a Microsoft 365 subscription.