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Connecting Microsoft Teams to PSTN Networks for Integrated Telephony Services

With Operator Connect, businesses can leverage their existing telecommunication services while enjoying the benefits of Microsoft Teams.

Operator Connect enables service providers to offer deeper integration into the Teams platform to enhance and streamline the Teams Phone experience around networking, provisioning, management, and reporting.

It enables businesses to directly connect their telecommunication providers to Microsoft Teams, allowing for seamless communication and collaboration within the Teams environment.

Through this partnership, Microsoft and operators can develop a deeper and more strategic relationship that takes Teams Phone to the next level by delivering higher-quality calling experiences to customers.

Teams Phone Operator Connect Mobile

With Operator Connect, businesses can leverage their existing telecommunication services while enjoying the benefits of Microsoft Teams. This eliminates the need for additional third-party applications or complex integrations, streamlining communication processes.

As this Microsoft Mechanics presentation demonstrates, the Teams Phone Operator Connect Mobile service is an industry first that lets you use a single SIM-enabled mobile phone number across your company provided mobile, desk phone, and Microsoft Teams.

Mahendra Sekaran, VP of Program Management for Microsoft Teams, joins Jeremy Chapman to share the quick admin steps to set up the first fixed mobile convergence productivity solution for business. This is enterprise-grade security and consistent call quality as you move between mobile voice and data networks.

  • Instead of two business numbers, use and pay for just one SIM-enabled mobile number.
  • Uplift from a voice-only call to a Teams call. Add video, people, and share content.
  • As an admin, assign a SIM-enabled phone number to your employees, set policies for enterprise-grade security.

Direct Routing

Direct Routing is a powerful option for organizations transitioning from traditional Private Branch Exchange (PBX) systems to Microsoft Teams Phone.

It enables businesses to connect their existing telephony infrastructure to Microsoft Teams, providing PSTN (Public Switched Telephone Network) connectivity through a Session Initiation Protocol (SIP) trunk. This hybrid approach offers flexibility, control, and a gradual migration path, making it a popular choice for enterprises with complex telephony needs or those not ready to fully abandon their legacy systems.

What is Direct Routing?

Direct Routing is a feature within Microsoft Teams Phone that allows organizations to integrate their on-premises telephony infrastructure or a third-party carrier’s SIP trunk with the Teams platform.

Unlike Microsoft’s Calling Plans, where Microsoft acts as the telephony provider, Direct Routing gives businesses the freedom to use their existing PSTN provider or PBX system. Essentially, it bridges the gap between legacy voice systems and the cloud-based Teams environment, enabling users to make and receive external calls directly within the Teams interface.

This approach leverages Session Border Controllers (SBCs)—devices or software that manage SIP traffic—to connect the organization’s telephony setup to Microsoft’s Azure cloud. It’s a customizable solution that supports a wide range of deployment scenarios, from fully replacing a PBX to running Teams Phone alongside existing systems.

How Does Direct Routing Work?

The mechanics of Direct Routing involve a few key components:

  • Session Border Controller (SBC): The SBC acts as the intermediary between your telephony provider (or on-premises PBX) and Microsoft Teams. It handles call signaling, media traffic, and security, ensuring seamless communication between the two environments. Microsoft certifies specific SBCs from vendors like AudioCodes, Ribbon Communications, and Cisco for compatibility.
  • SIP Trunk: This is the virtual connection between your telephony provider and the SBC. It carries voice traffic over IP, replacing traditional phone lines. If you’re retaining an on-premises PBX, the SIP trunk may connect the PBX to the SBC instead.
  • Microsoft Teams: Users access Teams Phone via the familiar Teams client on their desktop, mobile, or web browser. The platform routes calls through the Azure cloud to the SBC, which then connects to the PSTN via the SIP trunk.
  • Azure Active Directory: User authentication and call policies are managed through Microsoft 365, ensuring secure access and centralized administration.

When a user places an outbound call, Teams sends the request to the SBC via Azure. The SBC then forwards the call to the PSTN provider. Inbound calls follow the reverse path: the PSTN provider sends the call to the SBC, which routes it to Teams for delivery to the user. Media traffic (the actual voice data) can either flow directly between the SBC and Teams or be optimized based on network configurations.

Benefits of Direct Routing

Direct Routing offers several advantages, particularly for organizations with specific telephony requirements:

  • Carrier Flexibility: Businesses can retain their existing PSTN provider, preserving negotiated rates, contracts, or regional coverage that Microsoft Calling Plans might not support. This is especially valuable for multinational companies needing local numbers in multiple countries.
  • Hybrid Deployment: Direct Routing allows organizations to keep their on-premises PBX or telephony hardware operational while gradually migrating to Teams Phone. This minimizes disruption and supports a phased transition.
  • Cost Control: By leveraging existing infrastructure or carrier agreements, companies can avoid the per-user costs of Microsoft Calling Plans, potentially reducing expenses for large-scale deployments.
  • Advanced Features: Direct Routing supports complex call scenarios—such as call centers, analog devices (e.g., fax machines), or integrations with third-party systems—that may not be fully addressed by Calling Plans.
  • Number Portability: Organizations can port their existing phone numbers to the SBC provider, maintaining continuity for customers and employees without relying solely on Microsoft’s number management.
  • Customization: IT teams retain greater control over call routing, policies, and quality, tailoring the system to specific business needs.

Technical Requirements

Implementing Direct Routing requires careful preparation to ensure compatibility and performance. Key requirements include:

  • Certified SBC: You’ll need a Microsoft-certified SBC, either as a physical appliance or a virtual instance hosted on-premises or in a cloud environment like Azure. The SBC must be configured to communicate with both Teams and your PSTN provider.
  • Microsoft 365 Licensing: Users need a Microsoft 365 subscription that includes Teams, plus a Phone System license (typically part of E5 plans or available as an add-on to other plans).
  • Network Readiness: A robust internet connection is essential, with low latency, minimal jitter, and sufficient bandwidth to handle voice traffic. Microsoft recommends optimizing your network for Teams, often using QoS policies to prioritize voice data.
  • Public IP and FQDN: The SBC requires a public IP address and a Fully Qualified Domain Name (FQDN) for secure communication with Teams via Transport Layer Security (TLS).
  • Certificates: A trusted public certificate (e.g., from DigiCert or Sectigo) is needed to encrypt traffic between the SBC and Teams.
  • Firewall Configuration: Open specific ports (e.g., UDP 3478-3481 for media) and allow traffic to Microsoft’s SIP signaling domains.

Implementation Steps

Deploying Direct Routing involves a structured process:

  • Select an SBC Vendor: Choose a certified SBC that aligns with your infrastructure and budget. Consult with the vendor for sizing and deployment guidance.
  • Configure the SBC: Set up the SBC with your SIP trunk provider and link it to Teams via the Teams Admin Center. This includes defining routing rules, assigning phone numbers, and testing connectivity.
  • Assign Phone Numbers: Map numbers from your PSTN provider to Teams users, either manually or through automation tools.
  • Test and Validate: Conduct pilot tests with a small group to ensure call quality, feature functionality, and user experience meet expectations.
  • Roll Out: Expand the deployment across the organization, providing training and support to ease the transition.

Challenges and Considerations

While Direct Routing is highly flexible, it comes with complexities:

  • Technical Expertise: Configuring and maintaining an SBC requires skilled IT staff or vendor support, unlike the plug-and-play simplicity of Calling Plans.
  • Upfront Costs: Purchasing or leasing an SBC involves initial investment, though it may offset long-term subscription fees.
  • Network Dependency: Call quality hinges on internet performance, necessitating robust monitoring and optimization.
  • Compliance: Ensure your setup meets regulatory requirements (e.g., emergency calling or call recording) specific to your region or industry.

When to Choose Direct Routing

Direct Routing is ideal for:

  • Organizations with existing PBX investments they want to leverage.
  • Businesses needing carrier-specific features or local numbers not supported by Microsoft Calling Plans.
  • Large enterprises with complex telephony needs, such as call centers or multi-site operations.
  • Companies prioritizing control over their telephony environment.

By contrast, smaller organizations or those seeking simplicity may prefer Microsoft Calling Plans, which offload telephony management to Microsoft.

Conclusion

Direct Routing is a cornerstone of Microsoft Teams Phone’s flexibility, enabling businesses to modernize telephony without abandoning their existing investments. By connecting legacy PBX systems or third-party carriers to the cloud, it offers a tailored path to unified communications.

While it demands more technical effort than Calling Plans, the payoff—cost savings, customization, and scalability—makes it a strategic choice for enterprises navigating the shift from traditional telephony to a cloud-first future. For organizations ready to bridge the old and the new, Direct Routing is the key to unlocking Teams Phone’s full potential.

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