Microsoft Teams Calling in Australia: What It Really Costs and When It Works

Most Australian businesses already pay for Microsoft Teams, so the question comes up on almost every phone system conversation: can we just use Teams for our phone calls?

Often, yes. But Teams on its own cannot connect your business to the Australian public telephone network, the way you connect it to the phone network differs from other markets, and there is an important deadline affecting businesses currently using Telstra Calling for Office 365. If you’re still getting familiar with how Microsoft Teams calling works, our guide to Microsoft Teams Calling in Australia explains the setup, calling options and key considerations before you start comparing costs.

This guide explains what you actually need to make Microsoft Teams work as a business phone system, what each layer costs, how Australian businesses connect Teams to the phone network, what is happening to TCO365, and when Teams calling may not be the right choice.

Last updated: August 2026

What You Actually Need to Make Teams Ring

Microsoft Teams is a collaboration platform for chat, video meetings, file sharing and calls between people inside your organisation. It does not automatically connect to the public telephone network. That means Teams alone does not give you a business phone number that customers can call, or allow your staff to call ordinary Australian landlines and mobiles.

Turning Teams into a working business phone system involves three layers, and understanding all three is important when comparing costs.

Layer 1: Your Microsoft 365 Base Plan

Your Microsoft 365 subscription is the first layer. Most businesses already have one, but the plan you use affects the overall cost because Microsoft 365 E5 includes Teams Phone while most other plans do not.

Layer 2: Microsoft Teams Phone

Teams Phone provides the telephony capability that allows an external provider to connect Teams to the phone network.

For most Australian businesses, Teams Phone Standard costs from $15 per user per month excluding GST. If you already have Microsoft 365 E5, Teams Phone is included.

Importantly, Teams Phone on its own does not provide your Australian phone number, call rates or connection to the public telephone network.

The Teams Phone licence is purchased and assigned through the Microsoft 365 admin centre or whoever manages your Microsoft licensing. It is separate from your phone provider’s service and does not form part of the BroadConnect phone bill.

Layer 3: Your PBX and Australian Phone Network Connection

This is the layer that turns Teams into an actual business phone system. It covers the connection to the Australian phone network, phone numbers, call rates and the business phone features your staff rely on, such as voicemail, auto attendants, call queues, hunt groups, transfers, call flows, recording and reporting.

The key point is simple: buying only one layer does not give you a complete business phone service.

Why the PBX Layer Is the One That Matters

Microsoft includes basic calling features with Teams Phone, and smaller deployments can operate using those features alone. However, businesses with more demanding phone requirements can quickly run into limitations around call routing, reception handling, queues and reporting.

A hosted PBX behind Teams provides a dedicated telephony platform for those functions while staff continue using Teams as their everyday interface. This can provide more advanced call flows, queue and reception handling, hunt groups, recording and reporting rather than relying entirely on the basic telephony features inside a collaboration platform.

It can also provide an additional layer of resilience. Depending on the solution and customer setup, calls may be able to be handled through desk handsets, mobiles or another softphone if Microsoft Teams becomes unavailable. This failover capability should be confirmed for the specific deployment before it is relied upon.

For businesses where the phone is a primary customer contact channel, that resilience can be more important than saving a small amount on the Microsoft licensing layer.

Microsoft Calling Plans and Australian Availability

Microsoft Calling Plan availability varies by market and by product. Australian businesses should check Microsoft’s current market availability information before selecting a Calling Plan, rather than assuming that every Calling Plan SKU is available to Australian tenants. For many Australian businesses, Teams Phone Standard combined with an Australian carrier or PBX service may be the more appropriate structure.

Telstra Calling for Office 365 Is Being Withdrawn

For businesses already using Teams calling through Telstra, there is another important consideration: Telstra Calling for Office 365 (TCO365) is being withdrawn.

• TCO365 has been closed to new customers since 1 November 2024.
• From 30 August 2026, existing customers can no longer add new services, make changes or recontract.
• From 30 November 2026, the product is withdrawn from the market.

If you’re currently using TCO365, our guide to migrating from Telstra Calling for Office 365 explains the key migration considerations and alternatives available to Australian businesses.

Moving away from TCO365 does not necessarily mean rebuilding your Microsoft Teams environment. Your Teams environment and users can remain in place while the underlying calling provider changes. Your existing numbers can also be ported as part of the migration.

The Three Ways to Connect Teams to the Australian Phone Network

For Australian businesses, the main connection models are Operator Connect, Direct Routing and Teams Phone Mobile.

	Operator Connect	Direct Routing	Teams Phone Mobile
Who provides the calling	A carrier certified by Microsoft	Any carrier you choose	A mobile carrier
Who manages the connection	The carrier	You or your IT partner	The mobile carrier
Session Border Controller	Managed for you	You supply or rent one	Not applicable
Setup complexity	Low	High	Low
Best for	Most Australian small and mid-sized businesses	Large deployments, unusual call routing, in-house SBC expertise	Mobile-first teams wanting one number on the handset

Operator Connect

With Operator Connect, your carrier is available inside the Teams Admin Centre. The connection between your Teams tenant and the phone network is provisioned for you, without requiring you to buy, configure or maintain your own Session Border Controller.

Phone numbers, porting, call rates and support come from the carrier. The client document positions this as the preferred model for most Australian small and mid-sized businesses and identifies it as the model Broadconnect delivers.

Direct Routing

Direct Routing gives businesses greater control over how Teams connects to the phone network. You provide or rent a Session Border Controller and manage the relevant voice routing policies and dial plans.

It can make sense for larger deployments, unusual routing requirements or businesses with the technical expertise to manage the environment. However, the additional configuration and expertise can offset any apparent savings if those skills need to be brought in externally.

Teams Phone Mobile

Teams Phone Mobile allows a mobile number to become the Teams number, with calls ringing through the native mobile dialler rather than only through the Teams application.

This can be useful for mobile-first or field-based teams, although availability in Australia depends on the mobile carriers offering the service.

What Teams Calling Costs in Australia, Layer by Layer

The cost of Microsoft Teams calling in Australia is easier to understand when you separate the solution into three layers: your Microsoft 365 licence, the Teams Phone licence and the Australian phone network connection.

The first two layers are Microsoft costs. The third is provided by an Australian telecommunications provider and is where your actual phone numbers, calling service and PBX functionality come in.

Layer One: Your Microsoft 365 Base Plan

Your Microsoft 365 plan is the starting point. You may already be paying for this as part of your business productivity setup, but the plan you have determines whether Teams Phone is included or needs to be added separately.

Microsoft 365 plan	Per user per month	Teams Phone included?
Microsoft 365 Business Basic	From $11	No
Microsoft 365 Business Standard	From $21	No
Microsoft 365 Business Premium	From $33	No
Office 365 E1	From $14	No
Office 365 E3	From $39	No
Microsoft 365 E3	From $59	No
Microsoft 365 E5	From $90	Yes

Australian dollars, excluding GST, on an annual commitment, based on Microsoft’s published Australian list pricing as at July 2026. Monthly billing typically costs around 20% more.

Microsoft 365 Business Premium does not include Teams Phone. It is primarily a security and productivity bundle, not a telephony licence. Microsoft 365 E5 is the plan that includes Teams Phone.

Layer Two: Microsoft Teams Phone

If you have Microsoft 365 E5, Teams Phone is already included. For other eligible plans, Teams Phone Standard is an additional licence.

Microsoft licence	Per user per month	Available to Australian tenants?
Teams Phone Standard	From $15.00	Yes. This is the one you need.
Teams Phone with pay-as-you-go calling	From $19.50	No. Microsoft calling minutes are not sold in Australia.
Teams Phone with domestic calling	From $32.90	Check current Microsoft market availability.
Teams Phone with domestic and international calling	From $50.90	Check current Microsoft market availability.

Australian dollars, excluding GST, on an annual commitment, as at July 2026. Microsoft increased pricing across the Microsoft 365 range from 1 July 2026. Pricing shown is based on Microsoft’s Australian Teams Phone pricing and is subject to change. View Microsoft’s current Teams Phone pricing.

For an Australian business, Teams Phone Standard is the relevant Teams Phone licence. The other Calling Plan products shown above should not be treated as available Australian options. You purchase Teams Phone Standard through the Microsoft 365 admin centre or through whoever manages your Microsoft licensing. It is billed by Microsoft. Your Australian phone numbers, call rates and PBX service are separate costs supplied by your telecommunications provider.

For a detailed explanation of Microsoft Teams Phone licences and which Microsoft 365 plans include them, see our guide to Microsoft Teams Phone licensing

Which Microsoft Plans Can Add Teams Phone?

E5 is not a requirement for Teams calling. It is simply the Microsoft 365 tier where Teams Phone is already included.

For most other eligible Microsoft plans, Teams Phone Standard can be added separately.

Your current plan	What you add for calling
Business Basic, Business Standard, Business Premium	Teams Phone Standard
Microsoft 365 E3, Office 365 E1 or E3	Teams Phone Standard
Microsoft 365 F1 or F3 (frontline)	Teams Phone Standard, or the cheaper Frontline Workers version
Teams Enterprise, Teams Essentials, Teams EEA	Teams Phone Standard
Microsoft 365 E5 or Office 365 E5 that includes Teams	Nothing. Already included.
Any E3 or E5 plan sold without Teams	Teams Enterprise first, then Teams Phone Standard on top

Microsoft also sells some E3 and E5 variants without Teams included. In that situation, you need Teams Enterprise first, at roughly $5–$8 per user per month, before adding the Teams Phone licence. This is worth checking before you compare phone system quotes. A provider should establish exactly which Microsoft licensing variant your business has rather than assuming Teams is already included.

Microsoft’s Australian Teams Phone pricing currently lists Teams Phone Standard at AU$15 per user per month when paid yearly, excluding GST. Check Microsoft’s Australian Teams Phone pricing for the latest pricing and licence requirements.

Layer Three: Your PBX and Connection to the Australian Phone Network

This is the layer that gives Teams its connection to the Australian telephone network and turns Teams into a usable business phone system. Unlike the Microsoft licensing layers, the cost here depends heavily on how your business uses its phones.

Per user

Each person who needs a phone service pays a monthly rate and receives the relevant feature set. This is straightforward to budget and can work well for smaller teams, softphone-heavy businesses and people who spend a significant amount of time on calls.

Per channel

A channel represents one simultaneous call path, rather than one employee.

For example, a business with 26 employees might only need eight channels if no more than eight calls are normally taking place at the same time.

Per-channel pricing can therefore be more economical for businesses with larger user numbers but moderate simultaneous call volumes.

You do not necessarily have to choose one model for everyone. Broadconnect Teams Flex can combine per-user seats with shared calling channels, allowing businesses to provide full-featured seats to reception, sales or other heavy users while using shared capacity for staff with lighter calling requirements.

On top of these three layers, businesses should also consider number porting, desk handsets and optional services such as call recording, analytics and CRM integration.

The Costs That Do Not Appear on Any Licence Table

The Microsoft licence price is only part of the total cost of deploying Teams calling. Several items can be overlooked when comparing quotes.

Shared-Space Phones

Reception areas, meeting rooms, warehouses, kitchens and other shared spaces are not individual employee seats.

Microsoft licences these shared devices separately. A Teams Common Area Phone licence starts at around $11 per user per month excluding GST, before the cost of the physical handset itself.

Auto Attendants and Call Queues

Auto attendants and call queues require resource accounts, and external-facing queues also require phone numbers. The resource account itself does not carry a Microsoft licence charge, but the associated numbers and configuration still need to be accounted for.

Desk Handsets

Teams-certified desk phones can cost roughly $200–$800 each, depending on the model and features. For businesses with many physical handsets, hardware can represent a substantial part of first-year expenditure. Laptop-based teams may find a suitable headset to be a more economical option.

What This Looks Like in Practice

A 12-Person Business on Microsoft 365 Business Standard

A 12-person business using Microsoft 365 Business Standard is already paying for its Microsoft 365 subscription. The additional cost of Teams calling depends on the Teams Phone licence and Australian carrier/PBX layer required.

The important figure to compare against another cloud phone system is therefore the total incremental cost of adding business calling, rather than looking at the Teams Phone licence on its own.

A 40-Person Business on Microsoft 365 E5

A 40-person business using Microsoft 365 E5 is in a different position. At AU$85.30 per user per month when paid yearly, the Teams Phone entitlement is already included in the Microsoft 365 subscription.

The incremental cost of enabling business calling is therefore primarily the Australian carrier and PBX layer.

The difference can significantly affect the economics. If you’re already on E5, Teams calling can be a very cost-effective option. If you’re below E5, compare the complete cost before assuming Teams is the cheapest choice.

We can assess the numbers against your actual Microsoft licensing and calling requirements and tell you honestly if another phone system would make more financial sense.

When Teams Calling Is the Right Choice

You Already Have Microsoft 365 E5

If you’re already paying for E5, the Teams Phone entitlement is included. You’re primarily looking at the Australian carrier and phone-system layer rather than paying for another Teams Phone licence.

Your Team Lives in Microsoft Teams

If your staff already spend most of their day in Teams for chat, meetings and collaboration, adding business calling keeps everything in one application.

You Have Remote or Multi-Site Staff

Teams can provide a consistent calling experience for employees working across different locations, without requiring traditional office-based phone systems or complicated call-forwarding arrangements.

You Already Have Microsoft-Focused IT Support

Businesses with an internal IT team or IT provider already managing their Microsoft 365 environment may find Teams calling easier to incorporate into their existing technology stack.

You Need Microsoft Compliance Features

Businesses already using Microsoft’s security, compliance and retention tools may benefit from keeping their calling environment within the broader Microsoft ecosystem.

When Teams Calling Is the Wrong Choice

We would rather tell you this before a migration than after one.

You Need Advanced Inbound Call Handling

Teams’ native auto attendants and call queues can handle straightforward routing, but businesses with busy reception desks, complex department menus, overflow rules or contact-centre requirements may need more.

In these situations, a hosted PBX behind Teams or a purpose-built cloud phone system may be a better fit.

You Still Rely on Analogue Devices

Fax lines, door intercoms, paging systems, DECT cordless handsets and nurse-call equipment may not work natively with a Teams-only phone deployment.

These requirements can often be accommodated, but they need to be identified and designed into the solution before migration.

You Are a Small Team Without E5

For a very small team using a lower Microsoft 365 plan, the additional Teams Phone licence plus carrier layer can sometimes cost more than a dedicated cloud phone system that provides more advanced phone features.

You Are Buying Microsoft 365 Just to Get a Phone System

Microsoft 365 should be a productivity decision first.

If your business doesn’t need Microsoft 365 for its other capabilities, buying it primarily to obtain Teams calling may not make financial sense. Compare a dedicated business phone system as well.

Emergency Calling and the Step Many Deployments Skip

Emergency calling needs to be considered before a Teams calling deployment goes live.

Teams requires an emergency address to be configured for users so calls to 000 can be routed correctly and location information can be provided. This becomes particularly important for employees who work remotely or move between locations.

Emergency calling configuration is not something businesses should leave until after deployment. Ask your provider how 000 calls are handled for remote and mobile users and make sure the process is understood before cutover.

Plan for Outages Too

Every cloud phone system depends to some extent on your internet connection.

There are two separate risks to consider:

• Your business internet connection goes down.
• The cloud platform you rely on experiences an outage.

A backup 4G or 5G connection can help address an internet failure. A hosted PBX behind Teams can provide another path for handling calls if Microsoft Teams itself becomes unavailable, depending on how the solution is configured.

Keeping Your Existing Numbers

Yes, you can keep your existing Australian phone numbers when moving to Teams.

Number porting is handled by your Australian telecommunications provider rather than Microsoft.

• Simple number ports: 1–2 weeks
• Complex multi-number ports: 4–6 weeks
• Mobile numbers: generally much faster
• 1300 and 1800 numbers: handled separately and may require additional time

Before committing to a provider, ask who is responsible for managing the porting process and whether they support all of your existing number types.

What to Check Before You Commit

Before choosing Teams calling, check:

• Which Microsoft 365 plan are you actually using?
• Does it already include Teams Phone?
• Does your Microsoft 365 plan include Teams itself?
• Are you currently using Telstra Calling for Office 365?
• If so, when do you need to migrate?
• How many people need to make or receive calls simultaneously?
• Do your call flows require more than a basic auto attendant and queue?
• Do you have analogue devices, fax lines or paging systems?
• Who will configure emergency calling addresses?
• How will remote workers be handled?
• What happens to your phones if your internet connection fails?
• What happens if Microsoft Teams has an outage?
• Which numbers need to be ported, including 1300 or 1800 numbers?
• Who do you contact when something goes wrong, and how quickly can they respond?

How Broadconnect Delivers Teams Calling

Broadconnect has been delivering business phone systems in Australia since 1988, with offices in Sydney, Melbourne, Brisbane, Adelaide and Perth. Teams is one of the cloud calling platforms we deliver, which means we can also tell you when Teams isn’t the right choice for your business.

A Real PBX Behind Teams

Your staff continue working in Teams, while advanced call flows, queues, auto attendants, recording and reporting run through a dedicated hosted telephony platform.

This means businesses aren’t restricted to the basic phone features available directly within Teams, while the phone system can also be designed with additional resilience in mind.

Mix Per-User and Per-Channel Calling

Businesses don’t necessarily need to licence every employee in the same way.

Full-featured seats can be provided to people who spend most of their time on calls, while shared channels can be used for employees with lighter calling requirements.

Operator Connect Without the Complexity

BroadConnect can provision Operator Connect directly into your Teams tenant without requiring your business to purchase or manage its own Session Border Controller.

We Manage the Whole Move

The service can cover discovery, proposal, number porting, configuration, scheduled cutover, technical support, training and ongoing assistance.

The goal is to manage the migration rather than simply handing over a configuration and leaving your business to work out the rest.

Australian Infrastructure and Support

BroadConnect’s service uses Australian networks and Australian data centres, with an Australian support team available to assist customers.

Changes Are Included

New starters, changed call flows and updated hunt groups can be managed as your business requirements change.

If you want to know whether Teams calling is right for your business, whether you’re already paying too much or how to move away from TCO365 before it closes, call 1300 880 330 or request a quote.

Frequently Asked Questions

Conclusion: Is Microsoft Teams Calling Worth the Cost in Australia?

Microsoft Teams Calling can be a cost-effective business phone solution, particularly for organisations already using Microsoft 365 E5 or businesses whose staff work heavily within Teams. But the Teams Phone licence is only one part of the total cost.

If you’re considering Microsoft Teams Calling, Broadconnect can review your existing setup, work out the actual costs and recommend the most suitable approach – including telling you if Teams isn’t the right option for your business.

Call: 1300 880 330
Email: hello@broadconnect.com.au
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