Here’s Why Most Australian Businesses Aren’t Using It Properly.

YOUR TEAM IS ALREADY ON TEAMS. BUT YOU’RE STILL PAYING FOR A SEPARATE PHONE SYSTEM.

Most Australian businesses use Microsoft Teams daily for meetings, chat, and files. But a surprisingly small number have connected it to their actual phone system — meaning two platforms, two bills, and staff switching apps just to answer an external call. Here’s how to fix that.

Microsoft Teams has more than 320 million active users globally. But out of the box, it handles internal communication only. Making or receiving calls from the outside world — your clients, suppliers, anyone on a standard phone number — requires an extra step. And the way you take that step determines whether you end up with a genuinely unified business phone system, or just a slightly cheaper version of the mess you already have.

320M+
Microsoft Teams daily active users globally
80%
of large Australian organisations prefer Direct Routing over Calling Plans
40%
typical monthly savings switching from Calling Plans to Direct Routing via SIP
85%
of AU mid-market enterprises have initiated a PSTN-to-Teams migration in 2026

First: what does “Teams Phone integration” actually mean?

Out of the box, Microsoft Teams handles internal communication beautifully. Call a colleague, jump into a video meeting, share a screen. What it can’t do by default is make or receive calls to and from the outside world — your clients, suppliers, and anyone on a standard phone number.

To do that, you need to connect Teams to the Public Switched Telephone Network (PSTN) — the traditional phone network every Australian phone number sits on. There are three ways to do this, and the differences between them are significant.

The 3 ways to connect Teams to your phone network

MethodHow it worksBest for
Microsoft Calling PlansMicrosoft provides phone lines directly. Managed inside Teams Admin Centre.Small teams, simple setups, limited country availability
✓ Direct Routing via SIP Trunk (Recommended)An Australian carrier connects Teams to the PSTN via a Session Border Controller. Keep your numbers, control, and flexibility.Most Australian businesses — better pricing, more features, full control
Operator ConnectA certified carrier manages the connection directly inside Teams Admin Centre on your behalf.Businesses wanting simplicity with carrier-grade quality

For most Australian businesses, Direct Routing via SIP Trunking is the right answer. It gives you the full feature set of Teams Phone, the pricing flexibility of working with a local Australian carrier, and the ability to keep your existing phone numbers — without being locked into Microsoft’s own Calling Plans, which are often priced in USD and geographically limited.

What is Direct Routing and why does it matter?

Direct Routing is Microsoft’s term for connecting Teams to an external phone network through a certified third-party provider using a Session Border Controller (SBC). The SBC sits between your Teams environment and the carrier’s network, managing call security, quality, and routing.

Here’s why this matters for Australian businesses specifically:

  • Keep your numbers — existing Australian phone numbers (local, 1300, 1800) port across and ring directly in Teams
  • Local pricing — Australian SIP carrier rates for Australian call volumes, not USD Calling Plan pricing
  • Full feature control — ring groups, IVR menus, call queues, call recording, hunt groups — all configurable
  • Scale instantly — SIP channels are software-based; add or remove lines in minutes
  • Legacy compatibility — warehouse phones, fax lines, reception handsets can co-exist in a hybrid setup

3 myths about Microsoft Teams Phone — busted

❌  MYTH“We already pay for Microsoft 365, so Teams calling is included.”
✅  FACTMicrosoft 365 includes Teams for internal communication only. External PSTN calling requires a separate Microsoft Phone System licence add-on — and then a Calling Plan or Direct Routing provider on top of that. Most businesses discover this after they’ve already budgeted.
❌  MYTH“Setting up Teams calling means replacing all our desk phones.”
✅  FACTNot necessarily. Teams supports certified physical handsets from Yealink, Poly, and others. And with SIP Gateway, many existing SIP phones can connect to Teams without replacement. A good provider will audit what you have and tell you exactly what needs to change — which is often less than you think.
❌  MYTH“The call quality on Teams won’t be as good as our current phone system.”
✅  FACTA business-grade SIP trunk on a properly configured internet connection delivers call quality that exceeds traditional PSTN lines. The key words are ‘properly configured’ — which means working with a provider who understands bandwidth, QoS settings, and Australian network infrastructure.

How the setup actually works: step by step

Step 1:  Confirm your Microsoft 365 licensing

You’ll need Microsoft 365 E1, E3, or E5 with the Microsoft Phone System add-on assigned to each user who needs external calling. Your provider will confirm what you have and what’s missing before setup begins.

Step 2:  Choose your connection method

For most Australian businesses, Direct Routing via SIP Trunk is the recommendation. Your provider supplies the SBC — cloud-hosted (no hardware) or on-premises — and connects it to your Teams tenant.

Step 3:  Port your existing phone numbers

Your current Australian numbers — local, 1300, 1800 — are ported to your SIP provider and route directly into Teams. Your clients call the same numbers. Your staff answer in Teams. Nobody notices a thing.

Step 4:  Configure your call flows

Ring groups, auto-attendants, call queues, voicemail, business hours routing — all configured through your provider and Teams Admin Centre. A good provider does this with you, not just hands you a manual.

Step 5:  Go live — and ditch the old system

Once testing is complete, your team makes and receives all calls through Teams — on desktop, mobile, or a physical handset. One platform. One bill. No more switching between apps to answer an external call.

✔  BROADCONNECT TEAMS MIGRATIONS
The average Broadconnect Teams Phone migration takes 5–10 business days from sign-off to go-live. Number porting is handled end-to-end by our team — you don’t need to contact your old provider.

What to look for in an Australian Teams Phone provider

Not all SIP providers are created equal. When evaluating who to work with, ask these questions:

  • Are they Microsoft-certified? Direct Routing providers should be certified by Microsoft — this guarantees interoperability and call quality standards
  • Is support Australian-based? When your phones go down at 9am Monday, you need someone who picks up — not an overseas ticket queue
  • Do they manage the SBC for you? Cloud-hosted SBC means no hardware to maintain and no single point of failure in your server room
  • Can they handle number porting end-to-end? A good provider manages your old carrier, new carrier, and the ACMA registry — you shouldn’t be making calls between telcos yourself
  • Do they offer call recording and analytics natively? Look for a provider that layers reporting directly onto your Teams Phone environment
⚠  WATCH OUT

Some providers offer “Teams integration” that is actually just a softphone app sitting alongside Teams — not true Direct Routing. Your calls still happen outside Teams, you still have two systems, and you still get two bills. Always confirm your provider is delivering genuine Microsoft-certified Direct Routing or Operator Connect.

Why Australian businesses choose Broadconnect for Teams Phone

We’re not a reseller of someone else’s Teams product. Broadconnect delivers end-to-end Microsoft Teams Phone integration — SIP trunking, SBC management, number porting, call flow configuration, and ongoing Australian-based support — under one roof.

  • Microsoft-certified Direct Routing with cloud-hosted SBC — no hardware on your end
  • All Australian phone number types supported — geographic, 1300, 1800, mobile
  • Number porting managed entirely by our team — from your old provider to Teams
  • Native call recording, analytics, and reporting built into your Teams environment
  • 4G/5G backup internet available — so your phones stay up even if your primary connection drops
  • 100% Australian-based support — real people, not a ticketing system
  • NSW Government-listed supplier — independently verified standards
Ready to turn Teams into your business phone system?Book a free consultation with our Teams Phone specialists. We’ll review your current setup, confirm your licensing, and give you a clear migration plan — no jargon, no obligation.Call 1300 880 330  |  broadconnect.com.au

Frequently asked questions

Do I need a special Microsoft licence to use Teams as a phone system?

Yes. You need Microsoft 365 E1, E3, or E5 with the Microsoft Phone System add-on licence assigned to each user who needs external calling. Your provider will confirm what you have and what needs to be added before setup begins.

Can I keep my existing phone numbers when switching to Teams Phone?

Absolutely. Your Australian phone numbers — local, 1300, 1800 — can be ported to your SIP provider and connected directly to Teams. Broadconnect manages this process end-to-end. Your clients call the same numbers and reach your team in Teams.

What’s the difference between Microsoft Calling Plans and Direct Routing?

Microsoft Calling Plans are provided and managed by Microsoft directly. Direct Routing connects Teams to an external carrier via a certified Session Border Controller. Direct Routing gives you more flexibility, better Australian pricing, and full control over your call flows — which is why 80% of large Australian organisations prefer it.

Will Teams Phone work if our internet goes down?

With a 4G/5G backup internet connection — which Broadconnect can provide — your phones continue operating even if your primary NBN or fibre connection fails. Teams is also accessible on mobile data, so staff can make and receive calls from anywhere.

How long does a Teams Phone migration take?

Most Broadconnect Teams Phone migrations go from sign-off to go-live in 5–10 business days. The main variable is number porting, which depends on your current carrier. We manage the porting process entirely — you don’t need to coordinate with your old provider.

Do we need to replace our existing desk phones?

Not necessarily. Teams supports certified physical handsets, and many existing SIP devices can connect to Teams via SIP Gateway without replacement. We audit your current hardware as part of onboarding and tell you exactly what, if anything, needs to change.

Microsoft Teams licensing requirements are subject to change — confirm current requirements with your Microsoft partner or at microsoft.com. Broadconnect is an Australia-wide business phone and internet provider — call 1300 880 330 or visit broadconnect.com.au.