Direct Routing for Microsoft Teams establishes a Public Switched Telephone Network (PSTN) connection for Teams users, allowing them to engage in external phone calls across various devices within the Teams interface.

Traditionally, businesses have relied on Private Branch Exchange (PBX) phone systems, often situated on-premises, for both internal and external telephone communications. Microsoft Teams can now effectively replacing the conventional PBX system and associated infrastructure costs with a cloud-based approach. This transition enables seamless PBX voice calling capabilities both within and outside the organisation.

Microsoft Calling Plans vs. Direct Routing

Microsoft Calling Plans

• Quick and straightforward for smaller organisations.
• Microsoft serves as the PSTN carrier for all calls.
• Limited international coverage (currently supports 16 countries).
• Fixed bundle of calls with potential limitations and cost considerations.
• Limited flexibility and ongoing customer support.

Direct Routing for Microsoft Teams

• Connects Microsoft’s Phone System to PSTN through a third-party telephony provider.
• Preferred by larger organisations for its flexibility, broader geographic coverage, lower rates, and increased support.
• Allows organisations to choose their own telephony provider, offering tailored solutions to meet specific business requirements.
• One of the most popular telephony solutions for large enterprises using Teams for telephony.

Direct Routing offers enhanced flexibility, geographic coverage, cost-effectiveness, and support compared to Microsoft Calling Plans.