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Making phone calls in Microsoft Teams: how it actually works

Published 30 January 2026 · 10 min read

A Teams certified desk phone alongside Microsoft Teams

Teams has been a place to chat and hold meetings for years. What a lot of businesses still do not realise is that it can be the phone system too: your real business number, ringing on a laptop, answered wherever the person happens to be. This is what that looks like in practice, what has to be switched on first, and the one thing that goes wrong more often than everything else put together.

The 30-second version

  • Teams to Teams calls are free and always have been. Ringing an outside number is the part that needs setting up.
  • Two things switch it on: a Microsoft licence on the user, and a route to the phone network carrying your numbers.
  • No dial pad is almost always licensing, not a fault.
  • You do not need desk phones, but Teams certified ones exist where a handset genuinely helps.
  • Your main number, queues and out of hours menus all work, up to the point where you need a proper contact centre.

What calling in Teams actually means

There are two different things that both get called calling, and mixing them up is where most of the confusion starts.

Teams to Teams calls are the ones you already make. Ringing a colleague from their contact card, a quick call inside a chat, a meeting. Those are free, built in, and have nothing to do with the phone network.

External calling is ringing any ordinary phone number, and having your business number ring in Teams when a customer calls it. That is the part that needs a licence and a connection, and once it is on, a Calls icon with a dial pad appears in the sidebar and Teams behaves like a phone system.

The simplest test

Open Teams and look down the left sidebar. If there is a Calls icon with a keypad in it, external calling is on for you. If there is not, it is not, and the section further down explains why.

What has to be in place first

Two things, bought separately, and people are regularly sold one and surprised that nothing works.

  • A Microsoft licence that adds phone features to the user. This comes from Microsoft as part of your 365 subscription and is assigned per person.
  • A route to the phone network, with your numbers on it. This is the telecoms half, and it is where we come in. There are a few ways of doing it, covered in how Teams connects to the phone network.

The part worth pausing on is that both are per user. In most businesses a good proportion of staff never ring an outside line from a desk, and licensing the whole company because it is simpler to buy in one block is the most expensive decision in a Teams migration. It is worth actually counting.

What it is like to use day to day

Everything you would expect from a phone system is there. The difference is that it lives in an app people already have open rather than on a handset they have to be sitting next to.

What you want to doHow it works in Teams
Make a callThe Calls tab, then either a dial pad or start typing a name
Answer a callIt rings on every device you are signed in on. Answer on whichever one you are near
TransferStraight through, or consult the other person first and then hand over
Put someone on holdOn the call controls, same as any phone
VoicemailArrives in Teams with a written transcript, so you can read it rather than listen
See who calledFull call history in the Calls tab, with click to call back
Forward callsTo a colleague, to a group or to your mobile
Ring more than one deviceSimultaneous ring, so a desk and a mobile go at once
Have somebody answer for youDelegation, so an assistant can pick up and make calls on your behalf

None of this is unusual for a phone system. What changes is that the call sits next to the chat history, the shared files and the meeting with the same customer, which is the actual argument for doing it this way.

No dial pad? That is nearly always licensing

This is the single most common question we get asked about Teams calling, and it is almost never a fault. The dial pad only appears once the user has both halves in place, and it is usually one of four things.

  1. The phone licence is not assigned to that user. The business has it, the person does not. Easily missed when somebody joins.
  2. No phone number has been assigned. The licence is on, but nothing has been attached to it, so there is nothing to dial from.
  3. The calling policy has not been applied to that user or that group in the Teams admin centre.
  4. It simply has not propagated yet. Changes can take a while to appear. Signing out completely and back in shifts it more often than people expect.

Before raising a ticket

Sign out of Teams entirely, including on mobile, and back in. It resolves a surprising proportion of these, and it takes thirty seconds.

What people actually use it on

  • A laptop and a headset. This is what most office staff end up using, and for most of them it is genuinely better than a handset they have to sit by.
  • A Teams certified desk phone. Where a real handset helps, such as reception, a warehouse, a kitchen or a workshop, these run Teams natively and sign in as the user. Not every desk phone works, it has to be certified, so do not assume an existing handset will carry over.
  • The mobile app. The same business number, on a phone, without giving out a personal mobile number.
  • Meeting room kit. Room systems dial out on the same numbers, which matters more than it sounds once people stop dialling in on speakerphone.

A reasonable default is headsets for most people, handsets for the handful of places that genuinely need one, and the mobile app for anyone who is out. Buying a desk phone for every person because that is what the old system had is how a Teams migration stops saving money.

Your main number, queues and out of hours

The number on your website and your vans works exactly as it does now. It is attached to a resource account rather than a person, and from there it can ring a queue, a group or a menu.

The things most businesses need are all present. Call queues ring a team in the order you choose. Auto attendants give callers a menu. Out of hours routing sends evenings and weekends somewhere sensible. Holidays can be set in advance so nobody has to remember on Christmas Eve.

Where it stops is reporting and scale. Teams will tell you a call happened. It will not give you the live wallboards, the historic analytics, the omnichannel handling or the workforce planning that a busy support operation needs. At that point the answer is Teams alongside a contact centre platform, not Teams instead of one.

The things that catch people out

WhatWhy it matters
Emergency call addressesOn an old phone line the address came with the line. In Teams the app could be anywhere, so the address on each user has to be set deliberately and kept current
Equipment does not moveLifts, door entry, alarms and card terminals have no Microsoft account. They keep their own connections, and they are the most commonly forgotten part of a migration
Presence affects callsSetting yourself to do not disturb does what it says. Useful, until somebody wonders why the phone never rings
Network qualityVoice over a poor or congested connection is worse than no voice. It is fixable, but it should be checked before rather than discovered after
Handset compatibilityOnly Teams certified phones sign in properly. An existing handset from an old system usually will not

Where it fits, and where it does not

Teams calling suits businesses whose people already live in Teams, who mostly make ordinary calls, and who would rather have one system than two. If that is you, it is frequently the neatest answer available, and the PSTN switch-off in January 2027 means you are having the conversation anyway.

It is a weaker fit if you are not on Microsoft 365 at all, if you run a high volume contact operation, if the building is full of analogue equipment, or if most of your people need proper cordless handsets rather than a laptop. None of those rule it out. They just mean the answer is Teams plus something else, and it is much better to work that out at the start.

Want to see whether it fits before committing?

Tell us how many people actually ring outside numbers, what handsets you have now and what is plugged into the phone sockets around the building. That is normally enough for us to tell you what it would take and what it would cost.

Ask us

Tell us what you need, in Microsoft Teams: how it actually works.

Send this and a real person will reply. No call centre, no obligation, and we will tell you honestly if we are not the right fit.

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Related

Frequently asked questions

Yes, once external calling is switched on. That needs a Microsoft licence on the user and a connection to the phone network carrying your numbers. Without both, Teams can only call other Teams users.

Almost always licensing rather than a fault. Either the phone licence is not assigned to that user, no number has been attached, the calling policy has not been applied, or the change has not propagated yet. Signing out completely and back in fixes it more often than you would think.

Only where a handset genuinely helps, such as reception, a warehouse or a kitchen. Most office staff are happier with a headset. If you do want handsets they have to be Teams certified, so existing phones from an old system usually will not carry over.

Yes. The main number attaches to a resource account and can ring a call queue, a group or an auto attendant menu, with out of hours and holiday routing. What it does not give you is proper contact centre reporting, which needs a platform alongside it.

The emergency address configured against that user is what the operator sees, because the app could be anywhere. It has to be set during the migration and updated when people change site.

No, and this is where money gets wasted. Only the people who actually need to ring or be rung on an external number need licensing. In a lot of businesses that is well under half the staff.

See whether Teams would work as your phone system.

Tell us what you have now and how your team works. We will tell you honestly whether Teams fits all of it, some of it or none of it.