Microsoft Teams Calling Pricing

Microsoft Teams can replace your phone system, but the pricing has layers. Here is how Teams calling is billed and what it really costs.

Key Features

Calling Plans

Microsoft bundles minutes and phone numbers with your Microsoft 365 licence.

Operator Connect

A carrier connects Teams to the phone network under your existing billing.

Standard Plans

Microsoft 365 licences include many calling features before you add PSTN.

No Hardware

Calls run from the Teams app on the computers and phones you already use.

Team and Phone Numbers

Give users direct numbers or set up call queues and auto attendants.

Transparent Rates

Know your per-user and per-minute costs before you commit.

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Microsoft Teams calling pricing confuses a lot of Australian businesses, mainly because there is no single answer. The cost depends on how you connect Teams to the public phone network, and on your Microsoft 365 licences. For the bigger picture of Teams as a phone system, see our Microsoft Teams for Office 365 page.

How Teams Calling Is Priced

Teams itself is part of your Microsoft 365 licence. Making calls between Teams users is included. The cost appears when you add PSTN — the public switched telephone network — so that Teams users can make and receive real phone calls. That PSTN access is where the pricing models diverge.

Calling Plans

Microsoft sells Calling Plans that add a phone number and a bundle of minutes to each user's Microsoft 365 licence, with both national and international minute bundles available. Billing is monthly per user. It is the simplest route, but the per-user cost can add up if you have staff who barely use the phone.

Operator Connect

Operator Connect is where a carrier like Simple Telecom connects Teams to the phone network. You get a real phone number per user or per service, calls are billed through your carrier, and you keep using Teams exactly as before. Because you are not buying bundled Microsoft minutes for every user, it is often cheaper for businesses with light or variable call volumes.

What's Included in Teams

Before you pay for anything extra, remember what your licence already includes: internal calls, meetings, video, chat, auto attendants and call queues (with the right licence tier), call recording and voicemail. The decision is not "should we get Teams" — it is how to add real phone numbers and PSTN calling at a cost that makes sense.

Estimating Your Cost

Add up three things: your Microsoft 365 licences (which you likely already pay for), the per-user phone number or Calling Plan cost, and your call rates. Compare that against your current phone bill, including line rentals and mobile charges. For many businesses, Teams plus a sensible PSTN connection undercuts the old phone system — and our Microsoft Teams business voice page walks through what a full setup includes.

Frequently Asked Questions

  • Is Teams calling free? Calls between Teams users are included in your licence. Calls to real phone numbers require a Calling Plan or Operator Connect.
  • What is cheaper, Calling Plans or Operator Connect? It depends on usage. Operator Connect usually suits businesses that do not want to buy minutes for every user. Compare your bill against both.
  • Do I need new phones? No. Calls run through the Teams app on devices you already own.
  • Can I keep my existing numbers? Yes. Existing numbers can be ported across when you move your PSTN calling to Teams.

Teams versus a traditional hosted VoIP system is a common question — we compare the two in our Microsoft Teams vs Hosted VoIP page.