Teams Direct Routing vs Calling Plans Australia

Teams Direct Routing lets you bring your own SIP trunk provider. Calling Plans use Microsoft as the carrier. Operator Connect sits in the middle. Each option has different costs, different levels of control, and different limitations in Australia. This guide compares all three based on real AU deployment experience, licensing costs in AUD, and the practical realities of running Teams telephony on Australian NBN connections. By the end, you will know which approach fits your team size, budget, and existing infrastructure, and what hidden costs to watch for before committing.

Quick Verdict

For most Australian small businesses (1-50 seats), Direct Routing with a local SIP trunk provider is the best value option. Calling Plans are simpler to set up but significantly more expensive per user, with limited Australian phone number availability. 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.

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 three flavours, 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 SIP trunk 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 SIP provider. Many Australian SIP 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 1300 and 1800 numbers are not available through Calling Plans. The per-user cost is higher than equivalent SIP trunk plans, 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 in the Operator Connect program include Telstra Calling for Microsoft Teams, TPG Telecom, and a growing list of specialist providers.

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. These are approximate AUD prices as of early 2026. Microsoft adjusts pricing periodically, so check the Microsoft Teams pricing page for current rates. The key takeaway: Teams Phone licensing costs $12.50+/user/month regardless of how you connect to the phone network. This is a fixed cost that applies to Direct Routing, Calling Plans, and Operator Connect equally.

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 actually pay per month under each model. At first glance, Calling Plans appear competitive. But this is based on the domestic plan with limited minutes. The moment your team exceeds the included minutes, makes mobile calls, or needs international calling, the Calling Plan cost jumps significantly. Direct Routing with an Australian SIP provider offering unlimited national calling typically costs $8-15/user/month for the trunk, with no per-minute charges on local and national calls. Over 12 months, the savings compound.

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): The "+" on Calling Plans reflects overage charges. Teams Calling Plans include a set number of domestic minutes per user per month (typically 3,000 minutes for the domestic plan). For a 10-user business, that shared pool sounds generous, but outbound-heavy teams can burn through it. Excess minutes are billed at per-minute rates that add up fast. Direct Routing with an unlimited SIP trunk has no such ceiling.

Australian SIP Providers That Support Teams Direct Routing

Not every SIP trunk 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 hosted PBX 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 that can be configured for Direct Routing. 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.

Telstra Calling for Microsoft Teams - Telstra's Operator Connect integration. Not technically Direct Routing (it uses Operator Connect), but worth mentioning as it is the most common Teams voice deployment in larger AU enterprises.

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 SIP 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

The standout limitation of Calling Plans in Australia is the lack of 1300/1800 number support. If your business uses a 1300 or 1800 number (and many Australian businesses do for the professional image and call routing flexibility), Calling Plans are immediately ruled out. You would need Direct Routing or Operator Connect to keep those numbers. For more on how 1300 numbers work with VOIP, see our 1300 number guide.

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 SIP trunk provider you are happy with. You have an MSP or IT person who can manage (or your SIP 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 ($12.50/user/month) or E5 ($82.50/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 Teams Phone licence. Microsoft offers a Common Area Phone licence at a lower cost (~$11/month), but it is an additional line item many businesses miss during planning.

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 $0-50 per number depending on the losing carrier. The porting process itself takes 5-10 business days in Australia.

International calling add-ons for Calling Plans. The base Calling Plan covers domestic minutes only. International calling requires a separate add-on plan or pay-as-you-go rates that can be two to three times what a SIP trunk provider charges for the same routes.

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. Teams voice works reliably on any FTTP plan with 10+ Mbps upload.

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. Upload speeds of 5 Mbps or less are common on FTTN. With multiple concurrent calls, packet loss and jitter can degrade quality noticeably. If you are on FTTN with more than 5 concurrent Teams voice users, consider a dedicated internet connection or a 4G/5G failover link.

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 hosted PBX 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: Your ISP controls your current SIP credentials and will not hand them over. You need to port your number to a new SIP trunk provider, then configure that trunk for Teams Direct Routing. The porting process takes 5-10 business days. During the cutover, plan for a brief period where inbound calls may be disrupted. Your SIP provider can advise on minimising downtime.

From hosted PBX to Teams: If you are on a hosted PBX (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: The PSTN copper network has been shut down across most of Australia. If you are still on legacy copper, you will need to move to a VOIP-based service regardless. 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 $12.50-17.50/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 is more limited, 1300/1800 numbers are not supported, and the per-minute overage rates are steep. For AU businesses, Direct Routing almost always offers better value and flexibility. 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: many Australian SIP providers now bundle hosted SBC services for $0-50/month, removing the need to buy and manage hardware. Ask your SIP 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, Calling Plans are immediately off the table. You need 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 SIP 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 takes 5-10 business days. Do not cancel your existing service until the port is complete and confirmed. For more on how hosted PBX compares to on-premise, see our dedicated guide.

Can I use Teams for phone calls without paying extra?

No. Microsoft Teams includes chat, video meetings, and screen sharing with any Microsoft 365 plan. Making or receiving calls to regular phone numbers (PSTN calling) requires a Teams Phone licence ($12.50+ AUD/user/month) 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, availability of Australian phone numbers can be limited, 1300 and 1800 numbers are not supported, and per-minute overage rates are higher than what most Australian SIP trunk providers charge. 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. Many Australian SIP providers offer hosted or cloud SBC services bundled with their trunk, typically for $0-50/month. 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. Calling Plans do not support 1300 or 1800 numbers in Australia. To use your 1300 number with Teams, port it to a SIP trunk provider that supports Direct Routing, then route it through your SBC into Teams.

What internet speed do I need for Teams voice calling?

Microsoft recommends at least 500 Kbps upload and download per concurrent call. For a 10-user office where 5 people might be on calls simultaneously, you would need roughly 2.5 Mbps upload bandwidth dedicated to voice. Most NBN FTTP and FTTC connections handle this comfortably. FTTN connections with low upload speeds may struggle with more than 3-5 concurrent calls.

How long does it take to set up Teams Direct Routing?

If your SIP provider offers a managed SBC service, the technical setup can be completed in 1-3 business days. Number porting adds 5-10 business days on top. If you are self-managing an SBC appliance, allow 1-2 weeks for configuration and testing. The Teams Phone licences activate within hours of purchase.

Can I switch from Calling Plans to Direct Routing later?

Yes. You can migrate from Calling Plans to Direct Routing without losing your phone numbers. The process involves releasing numbers from the Calling Plan, setting up a SIP trunk and SBC, and reassigning the numbers. Plan for a few days of transition. Many businesses start with Calling Plans for simplicity and switch to Direct Routing as they grow and want more control.