Microsoft Teams Phone, formerly called Teams Voice, is a cloud-based telephone system built directly into Microsoft 365. For organizations already using Teams for communication and collaboration, adding Teams Phone is a natural next step rather than a separate implementation project.
What Teams Phone Includes
Teams Phone comes with the features you would expect from a business phone system, plus some capabilities that traditional phone systems cannot offer.
- Local phone numbers
- Auto attendants with extension dialing or dial-by-name options
- Call queues for routing incoming calls
- User and shared voicemail
- End-to-end call encryption
- Call recording
- Audio conferencing
- Domestic and international calling plans
- Toll-free dialing
Call Recording
Call recording is configured through the Teams Admin portal under Voice Calling Policies. When enabled, users can record one-on-one calls, and the recording is stored in the initiating user's OneDrive Recordings folder. The other party receives a notification when recording begins.
End-to-End Encryption
End-to-end encryption is configured via Enhanced Encryption Policies in the Teams Admin portal. It requires both participants to have the feature enabled. Content is encrypted before it leaves the sender's device and is only decrypted by the intended recipient.
Shared Voicemail
Microsoft 365 Groups can be used to route voicemails from auto attendants or call queues to shared inboxes. This works well for general inquiry lines and departmental routing where multiple people need to monitor incoming voicemail.
How Licensing Works
Teams Phone is an add-on license to an existing Microsoft 365 subscription. Users who need to make and receive external PSTN calls require a Teams Phone with Calling Plan license. Users who only need internal peer-to-peer calls over the internet can use the standard Microsoft Teams license. User mailboxes must reside in Microsoft 365 for Teams Phone to function correctly.
Troubleshooting Teams Phone
Service Issues
Start with the Microsoft 365 Admin portal service health dashboard. Many Teams Phone issues are service-wide and already acknowledged by Microsoft before you begin troubleshooting.
Call Problems
Check communication credits for depleted funds or disabled auto-charge settings. Usage reports in the Teams Admin portal provide more detail for deeper investigation.
Call Quality and Network Issues
The call quality dashboard and usage reports in the Teams Admin portal surface network-related performance issues and can help isolate whether a problem is device-specific, location-specific, or affecting the whole organization.
Why Organizations Switch to Teams Phone
The main advantages of migrating to Teams Phone are reduced hardware costs, selective per-user licensing based on actual calling needs, enhanced call security through encryption, and improved call routing through shared voicemail and call queues. For hybrid and remote teams, the ability to use the same phone number from any device, anywhere, is particularly valuable.