Cloud

Microsoft Teams Phone: Replacing Your IP PBX in a Philippine Office

June 9, 2026 · 6min read · The Technica Stack

Philippine offices that run Microsoft Teams for internal communication but maintain a separate IP PBX for external calls are managing two parallel systems — with separate hardware, separate support contracts, and separate training requirements. Teams Phone consolidates both into a single platform.

Teams Phone (formerly Teams Phone System, previously Cloud PBX) is Microsoft's cloud-hosted telephony service that enables PSTN calls (real phone calls to and from Philippine landlines and mobile numbers) through the Teams application. Staff make and receive calls from their Teams app on desktop, mobile, or IP phones — no separate desk phone required.

This article covers the confirmed capabilities, licensing, PSTN connectivity options for the Philippines, and what a migration from on-premise IP PBX involves.

What Teams Phone Replaces

A traditional Philippine office phone setup typically includes:

IP PBX (Cisco, Avaya, Yeastar, Sangoma, or similar) — handles call routing, extensions, auto-attendant, voicemail
SIP trunk or ISDN lines — connectivity to the PSTN (PLDT, Globe, or other local carrier)
IP phones on desks — hardware endpoints
PBX management software — often requires dedicated IT expertise
UPS protection for the PBX hardware

Teams Phone replaces all of this with:

Teams Phone System licence — adds PBX capability to Teams
PSTN connectivity via Operator Connect or Direct Routing
Auto-attendant and call queue configuration in Teams Admin Centre
Voicemail handled by Microsoft (recorded messages transcribed and delivered to Teams/Outlook)
Endpoints: Teams app (Windows, Mac, iOS, Android) or certified Teams IP phones

What Teams Phone does not replace: a physical handset if staff require one. Microsoft-certified IP phones (Poly, Yealink, AudioCodes) are available if desk phones are preferred over softphone usage.

Licensing

Teams Phone requires:

Microsoft 365 Teams Phone licence: USD $8/user/month (available as an add-on for M365 Business or Enterprise plans, or included in M365 E5)

This licence adds the PBX capability — extension dialling between Teams users, call queues, auto-attendant, voicemail, call park, call forwarding. It does not include PSTN minutes.

PSTN connectivity (for external calls to Philippine phone numbers) requires one of the following:

PSTN Connectivity Options for the Philippines

Option 1: Operator Connect

Operator Connect allows Microsoft-certified carriers to provide PSTN connectivity directly through the Teams Admin Centre, without on-premise hardware. The carrier manages the SIP infrastructure; phone numbers are assigned and managed via the Teams Admin Centre.

Philippine Operator Connect carriers (as of June 2026): Global carriers including PLDT Enterprise, Globe Business, and several international operators with Philippines coverage have Operator Connect certification or partnerships. Check the current Microsoft Operator Connect partner list as this evolves.

Cost structure: Monthly per-number fee + per-minute rates for outbound calls. Philippine local calls are typically billed at ₱1–3/minute for outbound via most Operator Connect carriers.

Advantages: No on-premise hardware, managed by the carrier, numbers in the same admin console as Teams

Disadvantages: Carrier selection limited to certified operators; pricing may be higher than direct SIP trunk for high-volume outbound calling

Option 2: Direct Routing

Direct Routing connects Teams to your own SIP trunk (PLDT, Globe, Converge, or any SIP-capable carrier) through a Session Border Controller (SBC) — either on-premise or cloud-hosted.

Cost structure: SBC hardware or hosted SBC service cost + your existing SIP trunk rates. Philippine SIP trunk rates from carriers like PLDT Enterprise are typically lower per-minute than Operator Connect for high-volume outbound.

Advantages: Use existing carrier relationships and rates; more flexibility for complex call routing scenarios; works with existing PLDT or Globe SIP trunks

Disadvantages: Requires SBC configuration and management; more technical complexity; on-premise SBC requires UPS protection and maintenance

Recommended SBC vendors for Philippine deployments: AudioCodes, Ribbon (formerly GENBAND/SONUS), Cisco (limited Teams support), Oracle ACME Packet. Cloud-hosted SBC services are also available.

Option 3: Microsoft Calling Plans

Microsoft provides the PSTN minutes directly. Not available in the Philippines as of June 2026 — Microsoft Calling Plans are only available in select markets and the Philippines is not currently included.

What Teams Phone Provides

Auto-Attendant

A multi-level IVR (Interactive Voice Response) configured in Teams Admin Centre. Callers hear a greeting and choose from options (Press 1 for Sales, Press 2 for Support) — routes calls to individuals, groups, or call queues.

Configuration is entirely cloud-based. No telephony expertise required — the Teams Admin Centre guides through the setup.

Call Queues

A call queue holds callers when all agents are busy and routes to the next available agent. Used for customer service or support lines. Supports hold music, position announcements, and overflow rules (if queue exceeds capacity, route to voicemail or another queue).

Voicemail

Voicemail messages are transcribed by Microsoft's AI and delivered to the user's Teams chat and Outlook inbox. Transcription accuracy for Philippine English is good; exact accuracy depends on caller accent and audio quality.

Call Recording

Microsoft Teams Premium (USD $7/user/month add-on) adds intelligent call recording with automatic transcription and AI-generated call summaries. Available for both inbound and outbound calls. Recordings are stored in OneDrive or SharePoint.

Devices

If staff prefer physical handsets, Microsoft-certified IP phones (Yealink T55A, Poly CCX 350, AudioCodes C450HD) connect directly to Teams without a PBX. They authenticate with the user's Microsoft 365 account.

Migration from On-Premise IP PBX

Phase 1: Assessment (1–2 weeks)

Document current PBX configuration: extensions, call flows, auto-attendant scripts, call queues, hunt groups
Identify current PSTN carrier and SIP trunk or ISDN configuration
Confirm M365 licensing — Teams Phone licence required per user
Decide on PSTN connectivity method (Operator Connect or Direct Routing)

Phase 2: Teams Phone Configuration (2–4 weeks)

Enable Teams Phone licence in M365 Admin Centre for pilot users
Configure auto-attendant and call queues in Teams Admin Centre
Set up PSTN connectivity (Operator Connect or SBC for Direct Routing)
Assign phone numbers to users
Test call flows end-to-end

Phase 3: Pilot (2 weeks)

Deploy to 5–10 pilot users
Verify inbound and outbound calling works
Test auto-attendant, call transfers, voicemail
Train pilot users on Teams calling interface

Phase 4: Full Rollout

Migrate remaining users
Port existing phone numbers to new carrier if needed (number porting can take 2–4 weeks with Philippine carriers)
Decommission legacy PBX after parallel run period

Philippine-Specific Considerations

Number porting: Porting existing PLDT or Globe phone numbers to a new carrier for Operator Connect requires a porting request with the receiving carrier. Philippine number porting timelines vary — allow 3–6 weeks.

Internet dependency: Teams Phone requires stable internet connectivity. For mission-critical calling (reception, customer service lines), dual-ISP redundancy is recommended.

Emergency calling (911/117): Confirm emergency calling configuration with your Operator Connect carrier or Direct Routing setup. Emergency call routing in Teams Phone requires specific configuration and carrier support.

For Philippine offices evaluating Teams Phone to replace an on-premise IP PBX, get in touch.

Talk to our Cloud & I.T. team →