Quick Verdict
Direct Routing can be good value for some Australian small businesses, but the lowest-cost option depends on call volumes, concurrency, Microsoft licensing, provider fees, number requirements and management costs. Calling Plans are simpler to set up, and at 10 users cost about the same per month as Operator Connect in the table below, while Australian phone number availability varies by number type and current inventory. Operator Connect is a solid middle ground for mid-size businesses that want carrier-grade reliability without managing SIP infrastructure. Here is how they compare at a glance.Pros
- Direct Routing gives full control over call costs, number management and provider choice
- Australian phone line providers (Maxotel, Aussie Broadband Business, VoIPLine) offer competitive per-minute and unlimited plans
- Direct Routing supports 1300/1800 numbers, geographic numbers, and complex call routing
- Calling Plans require zero SIP configuration, ideal for very small teams wanting simplicity
- Operator Connect carriers handle all SIP infrastructure while integrating natively with Teams admin
Cons
- Calling Plans have Australian number availability that varies by type and inventory; Microsoft's Australia page lists toll and toll-free numbers as unavailable, so 1300 and 1800 numbers need Direct Routing or Operator Connect.
- Direct Routing requires a Session Border Controller (SBC) or hosted SBC service
- All three options require Teams Phone licensing ($15.00-$32.90 AUD/user/month) on top of Microsoft 365
- Calling Plan costs can be higher or lower than Direct Routing once the complete SIP-trunk or PBX service, Teams integration, channels, numbers and call usage are included.
- Operator Connect has fewer AU carrier options compared to the US or UK markets
What Teams Direct Routing, Calling Plans and Operator Connect Actually Are
Microsoft Teams is a collaboration platform. On its own, it handles chat, video meetings, and file sharing. But it cannot make or receive calls to regular phone numbers without a voice connection to the public phone network (PSTN). That connection comes in four flavours, this guide compares three of them (Microsoft also documents Teams Phone Mobile), and which one you choose determines your monthly costs, number flexibility, and how much control you have over your phone system.Direct Routing
Direct Routing connects Teams to the phone network through your own phone line provider. You choose the carrier, negotiate your own rates, and manage your own numbers. The SIP trunk connects to Teams via a Session Border Controller (SBC), which acts as the bridge between your carrier's network and Microsoft's cloud. The SBC can be physical hardware on your premises, a virtual machine, or a hosted service from your phone line provider. Many Australian phone line providers now offer hosted SBC services specifically for Teams Direct Routing, which removes the need to manage hardware yourself.Calling Plans
Calling Plans turn Microsoft into your phone carrier. You buy a calling plan licence from Microsoft, get phone numbers directly from Microsoft, and all calls route through Microsoft's network. No SIP trunk, no SBC, no third-party carrier. It is the simplest option to configure. In Australia, Calling Plans launched with limited number availability. You can get Australian geographic numbers through Microsoft, but Microsoft's Australia page lists toll and toll-free numbers as unavailable, so 1300 and 1800 numbers need Direct Routing or Operator Connect. How the cost compares depends on the Calling Plan bundle you select and on the full set of Direct Routing charges (channels, numbers, calls, SBC and any PBX or SIP licences), and call rates for international and mobile calls can add up quickly.Operator Connect
Operator Connect is a Microsoft-managed marketplace where approved telecom carriers integrate directly with Teams. You choose a carrier from the Operator Connect portal in the Teams admin centre, and the carrier provisions numbers and SIP connectivity on your behalf. You get the simplicity of Calling Plans (no SBC to manage) with the flexibility of Direct Routing (choice of carrier, competitive rates, 1300/1800 support depending on carrier). Australian carriers offering Operator Connect include Microsoft Operator Connect with Telstra and Optus.Licensing Costs: What You Pay Microsoft (Before Any Calling)
Regardless of which PSTN connection method you choose, you need a Teams Phone licence for every user who will make or receive external phone calls. This is the cost Microsoft charges before you pay a single cent for actual calls.| Approximate AUD/user/month | Notes | |
|---|---|---|
| Microsoft 365 Business Basic | $10.50 | Includes Teams, but NOT Teams Phone |
| Microsoft 365 Business Premium | $33.00 | Includes Teams, but NOT Teams Phone |
| Teams Phone Standard add-on | $15.00 | Required for all three PSTN methods |
| Teams Phone with Calling Plan (bundle) | $32.90 | Includes Teams Phone + domestic calling minutes |
| Microsoft 365 E5 | $89.80 | Includes Teams Phone (but not Calling Plan) |
Real Cost Comparison: Direct Routing vs Calling Plans vs Operator Connect
Licensing is just the starting point. The real cost difference emerges when you add calling costs, SBC costs (for Direct Routing), and number charges. Here is what a 10-user Australian business would pay per month under each model, using published prices where they exist. All figures exclude GST.| Direct Routing | Calling Plans | Operator Connect | |
|---|---|---|---|
| Microsoft 365 (Business Basic) | $105 ($10.50 x 10) | $105 ($10.50 x 10) | $105 ($10.50 x 10) |
| Teams Phone licence | $150 ($15.00 x 10) | Bundled below | $150 ($15.00 x 10) |
| Calling Plan / SIP trunk | $136.23 (3 channels at $45.41 each, Caznet example) | $329 ($32.90 x 10, includes minutes) | $180 ($18.00 x 10, Telstra) |
| SBC / gateway | Quote required | $0 | $0 |
| Number charges (10 DIDs) | Confirm with provider | Included | Confirm with carrier |
| Total monthly estimate | $391.23 (before SBC and number charges) | $434 (before excess minutes) | $435 (before any number charges) |
Total Cost of Ownership: 1-Year and 3-Year View
For a 10-user business making moderate call volumes (each user averaging 60 minutes of outbound calls per day). Figures are 12 and 36 times the monthly totals above, all excluding GST, and use the same three-channel Direct Routing assumption:| Year 1 total | Year 3 total | Setup cost (one-time) | |
|---|---|---|---|
| Direct Routing | $4,695 (before SBC and number charges) | $14,084 (before SBC and number charges) | Quote required (Caznet: first number-porting batch $0) |
| Calling Plans | $5,208+ | $15,624+ | $0 |
| Operator Connect | $5,220 (before number charges) | $15,660 (before number charges) | Quote required |
Australian phone line providers That Support Teams Direct Routing
Not every phone line provider works with Teams Direct Routing. The provider needs to support specific SIP standards and ideally offer a hosted SBC or certified SBC compatibility. Australian providers that support (or are commonly used for) Teams Direct Routing include:Maxotel - SMB-focused AU provider with cloud phone system and SIP trunk services. Offers consultation-first approach, local AU support, and can provision SIP trunks compatible with Teams Direct Routing. Strong option for 1-20 seat businesses that want a local provider managing the SIP side.Aussie Broadband Business Voice - Offers SIP trunking . Aussie Broadband separately lists Microsoft Teams calling, SIP trunks and Operator Connect as distinct enterprise offerings, confirm directly with them whether your specific Business Voice SIP trunk supports Teams Direct Routing before assuming compatibility. Popular with businesses already using Aussie Broadband for internet. AU-based support.
VoIPLine Telecom - White-label and direct SIP services. Supports Direct Routing configurations. Offers hosted SBC options for businesses that do not want to manage their own.
Microsoft Operator Connect with Telstra - Telstra's Australian Operator Connect offering.AudioCodes / Ribbon (SBC vendors) - If you prefer to self-manage, these vendors make certified SBCs that connect any SIP trunk to Teams. Relevant for businesses with IT staff or an MSP managing infrastructure.If your business has 1-10 seats and no dedicated IT person, look for a phone line provider that offers a managed SBC service bundled with their trunk. This removes the most complex piece of Direct Routing setup. You should not need to buy, configure, or maintain an SBC appliance for a small deployment. For help choosing the right provider and plan, you can request a free recommendation tailored to your business.
Feature Comparison: What Each Option Can and Cannot Do
| Direct Routing | Calling Plans | Operator Connect | |
|---|---|---|---|
| Australian geographic numbers | Yes (via phone line provider) | Yes (limited availability) | Yes (via carrier) |
| 1300/1800 numbers | Yes | No | Depends on carrier |
| Number porting from existing provider | Yes (ACMA says individual local numbers are generally 8-15 days; complex local ports can take up to 30 days, and other number types follow separate processes) | Yes (limited, can be slow) | Yes (carrier-managed) |
| International calling | Yes (provider rates) | Yes (add-on plan, expensive) | Yes (carrier rates) |
| Call recording | Depends on provider/compliance plan | Depends on Microsoft licensing/policy (native) or a certified compliance-recording partner | Depends on carrier |
| Auto attendant / call queues | Yes (Teams feature) | Yes (Teams feature) | Yes (Teams feature) |
| Survivable branch connectivity | Yes (with SBA) | No | No |
| Works with existing PBX | Yes (hybrid possible) | No | No |
| Setup complexity | Medium-High | Low | Low-Medium |
| Ongoing management | You or your MSP manage SBC + trunk | Microsoft manages everything | Carrier manages trunk |
When Each Option Makes Sense
Choose Direct Routing When
Your business needs 1300/1800 numbers on Teams. You want the lowest per-minute calling costs. You already have a phone line provider you are happy with. You have an MSP or IT person who can manage (or your phone line provider offers managed SBC). You need to integrate Teams voice with an existing on-premise PBX during a migration period. You make significant volumes of mobile or international calls. You want full control over call routing, failover, and number management.Choose Calling Plans When
Your business has 1-5 users who primarily receive calls rather than make them. You do not use 1300 or 1800 numbers. You want the absolute simplest setup with zero third-party configuration. Your call volume is low enough to stay within the included minutes. You have no IT staff and no MSP, and you want Microsoft to handle everything. You are already on Microsoft 365 E5 (which includes Teams Phone) and just need to add the calling plan licence.Choose Operator Connect When
Your business wants carrier-grade reliability without managing SBC hardware. You prefer to deal with a telco for voice rather than self-managing. Your carrier is in the Operator Connect program (check the Teams admin centre for the current AU list). You are a mid-size business (20-200 seats) that wants a clean separation between Microsoft licensing and carrier billing. You want number porting handled by a carrier rather than doing it through Microsoft directly.The Hidden Costs Nobody Mentions
Whichever option you choose, watch for these costs that are often left out of the headline pricing:Teams Phone licence is not included in most Microsoft 365 plans. Business Basic, Business Standard, and even E3 do not include Teams Phone. You need either the standalone add-on ($15.00/user/month) or E5 ($89.80/user/month). Many businesses discover this after assuming their existing Microsoft 365 subscription covers voice.Common area phones need licences too. A phone in the kitchen, warehouse, or reception still needs a licence with Teams Phone capabilities. Microsoft's Shared Space licence (renamed from Common Area/Shared Devices before April 2026) covers this at a lower cost than a full user licence, but it is an additional line item many businesses miss during planning; check current Microsoft pricing for the exact rate.
Call queues and auto attendants are free, but resource accounts are not unlimited. Teams lets you build call queues and auto attendants at no extra cost, but each one requires a resource account with a virtual user licence. For most small businesses this is not an issue, but complex deployments can hit limits.
Number porting fees. Porting your existing numbers into Teams (whether via Direct Routing, Calling Plans, or Operator Connect) may incur porting fees from your current provider. Budget for fees that vary by provider, number type, port complexity, contract, and carrier arrangements. The porting process itself generally takes 8-15 business days in Australia for a geographic number.
International calling add-ons for Calling Plans. The base Calling Plan covers domestic minutes only. International calling is available through a domestic-and-international plan or pay-as-you-go rates, with costs varying by destination.
NBN and Call Quality Considerations
Teams voice quality depends on your internet connection, regardless of which PSTN method you use. All three options send voice data over the internet between your premises and Microsoft's (or your carrier's) cloud. In Australia, that means your NBN connection quality directly impacts call quality.FTTP (Fibre to the Premises): Best case. Consistent low latency, minimal jitter, and enough upload headroom for Teams voice on most plans with 10+ Mbps upload, though Microsoft points to network quality (latency, jitter, packet loss) rather than a specific access technology or speed threshold as the real determinant, use its Network Planner tool to check your actual network.FTTC / HFC: Generally good. Occasional congestion during peak hours can introduce jitter. A business-grade plan (or separate VOIP VLAN if your router supports QoS) helps.
FTTN (Fibre to the Node): Most variable. FTTN upload performance varies by line and plan; measure actual available upload bandwidth, latency, jitter and packet loss for the premises. With multiple concurrent calls, packet loss and jitter can degrade quality noticeably. If you regularly run several concurrent Teams voice calls on FTTN, test actual call quality with Microsoft's Network Planner tool and consider a dedicated internet connection or a 4G/5G failover link if it flags problems, rather than relying on a fixed concurrent-user threshold.
Use our VoIP bandwidth calculator to check whether your current connection can handle your expected call volume on Teams.
Migration: How to Move Your Existing Phone System to Teams
Most businesses moving to Teams voice are coming from one of three starting points: an ISP-provided phone service (green port ATA), a cloud phone system with a different provider, or a traditional landline that is being retired. The migration path differs depending on your PSTN connection choice.From ISP ATA (green port) to Teams Direct Routing: Some ISP-supplied voice services do not expose SIP credentials or support external registration; confirm this with your ISP. If the service cannot be connected to Teams, port the number to a suitable provider. You need to port your number to a new phone line provider, then configure that trunk for Teams Direct Routing. The porting process generally takes 8-15 business days. During the cutover, plan for a brief period where inbound calls may be disrupted. Your phone line provider can advise on minimising downtime.From cloud phone system to Teams: If you are on a cloud phone system (like with Maxotel or another provider), your provider may offer Direct Routing as an add-on, letting you keep your existing numbers and trunk while connecting to Teams. This is often the smoothest migration path.
From traditional landline: Most legacy landline services in NBN fixed-line rollout areas have been or will be disconnected, but NBN documents exceptions for Fixed Wireless, Sky Muster and some business or special services; confirm the premises and service before assuming migration is mandatory. This is a good time to move directly to Teams rather than going through an intermediate step. See our Teams phone system guide for the full setup walkthrough.
What Most Businesses Get Wrong
Mistake 1: Assuming Microsoft 365 includes phone calling. This is the most common misconception. Microsoft 365 Business Basic, Business Standard, and E3 all include Teams for chat and video meetings. None of them include the ability to make or receive calls to regular phone numbers. You need a Teams Phone licence (add-on or included in E5) plus one of the three PSTN connection methods. Businesses regularly budget for Microsoft 365 and then discover the phone system is an additional $15.00-32.90/user/month on top.Mistake 2: Choosing Calling Plans without checking Australian limitations. Calling Plans work well in the US where Microsoft has deep carrier infrastructure. In Australia, number availability varies by type and inventory. Microsoft's Australia page lists toll and toll-free numbers as unavailable, so 1300 and 1800 numbers need another route; compare current overage rates with complete provider quotes. Direct Routing can offer better value or flexibility in some deployments, but the result depends on call usage, concurrency, number requirements, provider charges and management costs. Check what you actually need before defaulting to the simplest option.Mistake 3: Forgetting about the SBC requirement for Direct Routing. Direct Routing requires a Session Border Controller. If you skip this in your planning, you will hit a wall during deployment. The good news: several Australian phone line providers offer hosted or cloud SBC services bundled with a Teams integration, typically priced per user rather than a flat provider fee, for example around $4-5 per Teams user per month, removing the need to buy and manage hardware. Ask your phone line provider whether they offer a managed SBC before assuming you need to buy one. For more on SIP trunking fundamentals, see our SIP trunking explainer.Your Next Steps
Before you commit to a Teams voice deployment method, work through this checklist:1. Confirm your Microsoft 365 plan. Check whether you are on Business Basic, Standard, E3, or E5. Only E5 includes Teams Phone. Everything else requires the add-on licence.2. Check your current phone numbers. Do you have 1300/1800 numbers? If yes, check each number type separately: Microsoft's Australia page lists toll and toll-free numbers as unavailable, so a 1300 or 1800 number points you to Direct Routing or Operator Connect.
3. Audit your call volumes. Pull your last 3 months of call records from your current provider. How many minutes per user per month? If it is under 1,000 minutes, Calling Plans might work. If it is higher, Direct Routing with an unlimited trunk is likely cheaper.
4. Test your internet connection. Use our bandwidth calculator to check whether your NBN connection can support Teams voice for your team size.
5. Get SIP trunk quotes. Contact 2-3 Australian phone line providers and ask specifically about Teams Direct Routing support, hosted SBC pricing, and number porting timelines. Compare their per-user monthly cost against the Calling Plan bundle price.
6. Factor in total cost. Add up: Microsoft 365 licence + Teams Phone licence + calling plan or SIP trunk + SBC (if applicable) + number charges. Use our VoIP cost calculator to estimate your total monthly spend.
7. Plan your number porting. Number porting in Australia generally takes 8-15 business days for a geographic number. Do not cancel your existing service until the port is complete and confirmed. For more on how cloud phone system compares to on-premise, see our dedicated guide.
Understanding which architecture to choose is only half the picture. For a full cost comparison including licensing layers, hidden fees, and how Teams Phone total cost stacks up against dedicated VOIP for Australian SMBs, see Microsoft Teams Phone Pricing Australia.
Self-managed Direct Routing requires certified-SBC and Teams voice-routing administration, but a managed Direct-Routing-as-a-Service provider can host and automate much of that work. Our Do I Need an IT Company for My Phones? quiz is worth running before you commit to Direct Routing, it assesses whether your team has the in-house capability to manage it ongoing.
Can I use Teams for phone calls without paying extra?
No. Microsoft 365 is sold in both Teams-included and no-Teams variants, so confirm that the exact subscription includes Microsoft Teams before adding Teams Phone. Making or receiving calls to regular phone numbers (PSTN calling) requires a Teams Phone licence (AU$15.00/user/month at annual list pricing, excluding GST) plus one of the three connection methods: Direct Routing, Calling Plans, or Operator Connect.
Are Teams Calling Plans available in Australia?
Yes, Microsoft offers domestic Calling Plans for Australian users. However, Australian number availability varies by type and inventory. Microsoft's Australia page lists toll and toll-free numbers as unavailable, so 1300 and 1800 numbers need Direct Routing or Operator Connect; compare current rates with complete provider quotes. Check current availability in the Teams admin centre before committing.
Do I need an SBC for Direct Routing?
Yes, Direct Routing requires a Session Border Controller (SBC) to connect your SIP trunk to Microsoft Teams. However, you do not necessarily need to buy hardware. Several Australian phone line providers offer hosted or cloud SBC services bundled with their trunk, typically priced per user (for example, around $4-5 per Teams user per month) rather than a flat provider fee. Ask your provider about managed SBC options.
Can I keep my 1300 number if I move to Teams?
Yes, but only with Direct Routing or Operator Connect. Microsoft's Australia page lists toll and toll-free numbers as unavailable, so an existing 1300 or 1800 number needs Direct Routing or Operator Connect. To use your 1300 number with Teams, port it to a phone line provider that supports Direct Routing, then route it through your SBC into Teams.
What internet speed do I need for Teams voice calling?
Microsoft's Teams Phone guidance estimates approximately 58 to 76 kbps in each direction for audio and recommends allocating 100 kbps per Teams phone resource account; use Teams Network Planner for broader client and office requirements. For five simultaneous audio endpoints, Microsoft's 58-76 kbps per-endpoint figures equate to roughly 0.29-0.38 Mbps in each direction; using its 100 kbps planning allocation for each Teams phone resource account gives about 0.5 Mbps. Most NBN FTTP and FTTC connections handle this comfortably. FTTN performance varies; test measured bandwidth, latency, jitter and packet loss with Teams Network Planner rather than relying on a fixed concurrent-call threshold.
How long does it take to set up Teams Direct Routing?
Setup time varies by provider and how you configure the SBC, there is no single Microsoft-published timeline. If your provider offers an automated managed SBC integration, some (like MaxoTel) say it normally takes minutes but can take up to 24 hours depending on Microsoft infrastructure, others cite up to 48 hours for Microsoft-side synchronisation to complete. If you are self-managing an SBC appliance, budget more time for configuration, certification and testing, ask your integrator for a realistic estimate for your setup. Number porting adds separately on top for a geographic number, see our number porting timeline guide for current figures. Teams Phone licences themselves typically activate quickly after purchase, but always confirm current timelines with your provider rather than assuming a fixed schedule.
Can I switch from Calling Plans to Direct Routing later?
Yes. You may be able to retain a Calling Plan number when moving to Direct Routing, but the new carrier must first confirm that the number is portable and coordinate the transfer. Do not release or disconnect the existing number before the port is completed and confirmed. Many businesses start with Calling Plans for simplicity and switch to Direct Routing as they grow and want more control.
Not Sure Which Teams Voice Option Is Right for Your Business?
Get a Recommendation