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Microsoft Teams Phone and Teams Direct Routing explained

Last updated on Apr 11, 2026

Summary

Microsoft Teams Phone turns Microsoft Teams into a full business phone system. Teams Direct Routing is one of the ways that Teams can connect to the outside phone network. This article explains what each part does and how they work together with KTS.

Who this is for

Any organisation using or considering Microsoft Teams as a phone system, and users who want to understand how their Teams calling works.

What Microsoft Teams Phone is

Microsoft Teams Phone is the phone system functionality built into Microsoft Teams. It lets you make and receive external phone calls from within Teams, on your desktop, mobile, or a compatible handset. You get features such as voicemail, hold, transfer, call groups, and auto attendants, all inside Teams.

What Teams Direct Routing is

Teams Direct Routing is a way of connecting Microsoft Teams to a third party voice carrier instead of using a Microsoft calling plan. With Direct Routing, KTS provides the outbound and inbound calling service, while your phone system experience still lives inside Microsoft Teams.

In plain terms:

  • Teams Phone is the phone system and user experience

  • Direct Routing is the way calls get to and from the public phone network through KTS

The two work together. Users dial, answer, and manage calls in Teams, and KTS handles the calls behind the scenes.

Who Teams Phone is suitable for

Teams Phone suits organisations that:

  • Already use Microsoft Teams as a core collaboration tool

  • Want one app for chat, meetings, and phone calls

  • Have users who work flexibly from different locations or devices

  • Want to reduce reliance on physical desk phones

It may be less suitable for very call-heavy contact centre environments without additional tools.

What KTS provides

KTS can deliver Teams Direct Routing so that your Teams Phone service connects to the outside world through us. We can also help with number porting, call flow design, and user enablement. Exact capabilities and entitlements depend on your Microsoft licensing, which should be confirmed with your account manager.

What KTS may need from you

  • The domain and tenant name of your Microsoft 365 environment

  • The users or groups to be enabled for Teams Phone

  • Existing numbers to port or new numbers required

  • Preferred call flow at a high level, for example where calls should land and how they should route

When to contact the service desk

Contact the service desk if Teams calls are failing, if a specific user cannot make or receive calls, or if you want to request a change to call flows, users, or numbers.