Microsoft Teams Phone vs VoIP: Which Is Best for Your Business?

Picking a phone setup? Lots of companies across Australia now weigh Microsoft Teams Phone against regular VoIP. When workplaces blend office and remote work, communication shifts hard. Cloud tools arent just add, ons anymore. Inside these digital hubs, calling fits right in, not tacked on later.

What matters most? Not just what handles phone calls. Fit comes down to how well it matches daily operations. Scaling up should feel natural, not forced. Hooking into existing tools can make a difference. Costs over time need to stay predictable. Business leaders and tech staff both weigh these things.

This guide takes a close look at Microsoft Teams Phone alongside regular VoIP through real, world business needs. Instead of jargon, it weighs how each handles daily operations, adapts to change, manages costs, delivers clear audio, and suits different team setups, giving your company clearer ground for choice.

What Is Microsoft Teams Phone?

Cloud power drives Microsoft Teams Phone, slotting voice calls right into the familiar workspace. Calls reach outside lines thanks to Microsoft’s own phone network backbone. Messaging stays put, now voices travel further too. Built, in strength grows when conversations step out of chat and hit real phones.

Broadconnect provides flexible Microsoft calling solutions through Microsoft Teams Flex, allowing businesses to integrate professional voice capabilities directly within Teams.

How Teams Phone Works

• Calls are made and received inside Microsoft Teams
• Users operate from desktop apps, mobile apps, or compatible devices
• Microsoft licences manage calling features
• Numbers and calling plans connect via certified providers

Core Benefits of Teams Phone

• Seamless integration with Microsoft 365
• Centralised collaboration and calling
• No need for separate phone apps
• Strong mobility for hybrid teams
• Built-in presence and status visibility

For organisations already using Microsoft 365 heavily, Teams Phone offers convenience and unified communication inside a single platform.

What Is Traditional VoIP?

On top of the net, talking happens through a method called VoIP. Instead of old lines, sound travels in pieces across connections online. Hosted phone systems work this way, along with setups using SIP links or remote control boxes stored in digital space.

Here’s something different, Broadconnect brings a fresh take on office calling, built only for how companies talk today.

Hosted VoIP Compared to Basic VoIP

• Hosted VoIP Cloud PBX Managed Service With Advanced Features
• Internet phone service for everyday use, minus advanced business features

Hosted VoIP Systems Include

• Auto-attendants
• Call routing and IVR
• Call reporting and analytics
• Desk phone and softphone support
• CRM integration capabilities
• 1300/1800 number support

Telephone service through the internet stays separate from any single tech environment. Running on its own, away from office tools, it focuses purely on company calling needs.

Microsoft Teams Phone vs VoIP

Feature	Microsoft Teams Phone	Traditional VoIP
Call Routing	Basic to advanced (licence dependent)	Advanced routing & IVR standard
CRM Integration	Via connectors	Often built-in or configurable
Device Support	Teams-certified devices	Wide range of desk phones & softphones
Mobility	Strong via Teams app	Strong via mobile VoIP apps
Scalability	Licence-based scaling	User or extension scaling
Cost Structure	Per-user licence + calling	Subscription per user/feature
Flexibility	Best inside Microsoft ecosystem	Platform-agnostic

The biggest difference in Microsoft Teams Phone vs VoIP lies in ecosystem integration. Teams Phone works best when your organisation already relies heavily on Microsoft tools. VoIP works independently and may offer greater telephony flexibility.

Use Cases: Which Works Better?

Remote and Hybrid Teams

Teams Phone excels for distributed teams already collaborating in Microsoft 365. Calling becomes part of daily workflow without switching platforms.

Sales Teams

VoIP systems often provide more advanced call reporting, recording options, and routing flexibility, which can benefit outbound sales environments.

Desk-Oriented Businesses

Companies with reception desks, call queues, or structured call flows often prefer hosted VoIP systems for advanced configuration.

Call Centres

While Teams Phone can handle calls, dedicated VoIP or SIP-based systems are often more robust for high-volume environments requiring detailed call management.

Common Misconceptions

“Teams Phone Isn’t VoIP”

Technically, Microsoft Teams Phone uses VoIP technology. However, it is packaged within Microsoft’s collaboration ecosystem rather than delivered as a standalone telephony platform.

“Teams Replaces All Phone Systems Automatically”

Teams Phone still requires proper licensing, number provisioning, and reliable internet connectivity. It is not automatically enabled by default Microsoft 365 subscriptions.

“Internet Doesn’t Matter”

Both Teams Phone and VoIP depend entirely on internet quality. Without stable upload speeds and low latency, call quality suffers regardless of platform.

Businesses should ensure they have reliable business internet before deploying either solution.

How to Choose Between Teams Phone and VoIP

When comparing Microsoft Teams Phone vs VoIP, consider:

Business Size

Small teams already using Microsoft may benefit from simplified Teams integration. Larger organisations may need advanced routing that hosted VoIP provides.

Budget

Teams Phone involves licensing layers plus calling plans. VoIP typically bundles features into one monthly subscription.

Required Integrations

If your business relies heavily on CRM systems outside Microsoft, traditional VoIP may offer easier integration flexibility.

Mobility Needs

Both solutions support mobility, but Teams may offer smoother integration for staff who already work inside Microsoft apps.

Pricing Overview

Pricing structures differ between the two options.

Microsoft Teams Phone

• Per-user licence fees
• Additional calling plan charges
• Potential device costs

Hosted VoIP

• Per-user subscription
• Feature-based pricing tiers
• Optional hardware purchases

Exact pricing varies depending on configuration, usage, and provider structure. Businesses should compare total cost of ownership rather than base licence fees alone.

If you are also evaluating number types for your business, reviewing 1300 Number Cost in Australia can help clarify call cost structures.

Additionally, internet capacity plays a major role in pricing efficiency. Businesses unsure about bandwidth requirements should review How Much Internet Does a Small Business Need? before implementing a new phone system.

Internet Requirements for Both Solutions

Both Microsoft Teams Phone and VoIP require:

• Stable upload speeds
• Low latency
• Minimal packet loss
• Prioritised voice traffic

Investing in high-speed business internet is essential to ensure call clarity and reliability.

FAQs

Final Thoughts

The decision between Microsoft Teams Phone vs VoIP depends on your operational priorities.

Teams Phone works well for Microsoft-centric environments seeking unified collaboration. Traditional VoIP offers deeper telephony flexibility and independence from productivity platforms.

Both require reliable internet and thoughtful setup.

Ready to Compare Your Options?

Whether you’re exploring Teams integration or a dedicated cloud phone system, Broadconnect can assess your business requirements and recommend the right solution.

We would love to help you find the right business internet and phone solutions. Follow us on  Facebook, LinkedIn, and Instagram or reach us at hello@broadconnect.com.au | Call: 1300 880 330