Microsoft Teams Phone for Sydney Businesses

Key facts

• Teams Phone adds calling to Microsoft Teams; the Teams Phone Standard licence starts at roughly AU$13 per user per month ex GST.
• An all-inclusive option with a Domestic Calling Plan and an Australian number typically runs around AU$22 per user per month ex GST.
• Pay-as-you-go calling starts from about AU$10 per user per month plus per-minute charges, which suits low-volume callers.
• Number porting from an existing Australian carrier usually takes 10 to 20 business days, including local, 1300, and 1800 numbers.
• Telstra Calling for Office 365 closed to new customers in November 2024 and is being withdrawn entirely by November 2026, so affected businesses need a new calling path.

How does Microsoft Teams Phone work?

Teams Phone works by adding a calling licence and a connection to the public phone network on top of your existing Microsoft Teams. Once it is set up, the Teams app behaves like a phone: staff dial out, receive calls on their business number, transfer, hold, and set up call queues and auto-attendants, all from the same app they already use for chat and meetings.

There are two parts to get right. The first is the licence that enables calling. The second is how calls reach the phone network, either through a Microsoft Calling Plan or through Direct Routing via a connectivity provider. Which one suits you depends on your call volume, whether you are porting existing numbers, and how much you want bundled into a single bill.

How much does Teams Phone cost in Australia?

Teams Phone pricing in Australia has a licence component and a calling component. The Teams Phone Standard licence, which enables calling, starts at around AU$13 per user per month ex GST. Add a Microsoft Domestic Calling Plan with an Australian number and the all-inclusive figure is typically about AU$22 per user per month ex GST. Pay-as-you-go starts lower, from roughly AU$10 per user per month plus per-minute charges, which can be cheaper for staff who rarely make outbound calls.

These are indicative retail figures and the exact cost depends on your existing Microsoft 365 licences, user count, and connectivity choice. We quote against your actual setup rather than a headline number, and we will tell you honestly when pay-as-you-go beats a flat calling plan for your call patterns.

Can we keep our existing phone numbers?

Yes. Existing Australian phone numbers, including local geographic numbers, 1300 numbers, and 1800 numbers, can be ported into Teams Phone. We manage the full porting process with your current carrier, which typically takes 10 to 20 business days depending on the losing carrier. The port is scheduled so your numbers keep working right up to the cutover.

If your business is on Telstra Calling for Office 365, this matters more than usual. That product closed to new customers in November 2024 and is being withdrawn from the market by November 2026, so existing users will need to move to a different calling path. Teams Phone with either a Microsoft Calling Plan or Direct Routing is the natural replacement, and we can manage that transition.

Is Teams Phone right for a small business?

Teams Phone is a strong fit for small businesses that already run on Microsoft 365 and want to retire ageing desk phones or an on-site PBX. Because calling lives inside an app staff already use, there is no separate phone system to learn, and remote and hybrid staff get the same business number whether they are in the office, at home, or on their mobile.

It is less compelling if you have a recent, fully featured phone system that staff are happy with, or highly specialised call-centre requirements that a dedicated platform handles better. We will say so if that is the case. For most Sydney SMEs on Microsoft 365, though, consolidating phones into Teams removes a whole separate vendor and bill, which is usually the point.