3CX vs Microsoft Teams Phone: Which Is Best for Australian Business?
3CX or Microsoft Teams calling? An honest, plain-English comparison of features, cost and fit for Australian businesses.
If you're choosing a new business phone system in 2026, the two names you'll hear most are 3CX and Microsoft Teams Phone. Both can run your calls over the internet, both can ditch old ISDN/PSTN lines, and both work well for Australian businesses. But they're built differently, and the right pick depends on how your team actually works. Here's a plain-English comparison from the local crew at SIP Connect in Greensborough, so you can decide with your eyes open.
Which phone system fits your business?
We're vendor-neutral, so here's the honest shortlist. Not sure which to pick? A free bill analysis sorts it in minutes.
3CX
- Licensed by simultaneous calls, not users
- Free inter-office & branch calls
- Video for up to 250 people + live chat
Microsoft Teams
- Make & take calls inside Teams
- Direct Routing — no SBC to manage
- One app for chat, meetings & calls
Hosted PBX
- Enterprise features in the cloud
- Nothing to rack or maintain
- Add or remove users with a call
The short version
Pick 3CX if you want a dedicated phone system with flexible licensing, free inter-office calls and lots of control over how calls are handled. Pick Microsoft Teams Phone if your team already lives in Teams all day and you'd rather make and take calls in the same app you use for chat and meetings. Neither is "better" across the board, they're built for different working styles.
What is 3CX?
3CX is an open-platform phone system you can run hosted in the cloud or on-premise. The standout is the licensing model: you pay by the number of simultaneous calls, not by how many extensions or staff you have. So a 30-person team that's never on more than eight calls at once only licenses for eight. Plans come in Small (4), Medium (8) and Large (16) simultaneous-call tiers.
You also get free calls between offices and branches, free video conferencing for up to 250 participants, and free live chat baked in. It runs softphone, desk handset (we partner with Yealink and others) or mobile app, so staff can work from anywhere. If that sounds like your business, the full rundown is on our 3CX phone system page.
What is Microsoft Teams Phone?
Teams Phone turns Microsoft Teams into your office phone. Calls, chat, video and files all sit in one app, which is genuinely handy if your business already runs on Microsoft 365. To connect Teams to the real phone network and your local numbers, you need calling capability plumbed in. We do that through Microsoft Teams Direct Routing, with no SBC for you to buy, configure or babysit, that part is on us.
One thing to know if you're already on the older Microsoft calling path: Telstra Calling for Office 365 is being withdrawn (stop-sell since late August 2026, fully gone by late November 2026). If you're on it, you'll need a new way to carry your calls, and Direct Routing is a clean replacement that keeps you in Teams.
3CX vs Teams Phone: how they compare
| What you're comparing | 3CX | Microsoft Teams Phone |
|---|---|---|
| Best for | Call-heavy teams, reception desks, support lines and multi-site businesses | Offices already glued to Microsoft 365 |
| Licensing | Priced by simultaneous calls, which often works out cheaper for bigger teams | Typically licensed per user |
| Call handling | Deep control over queues, IVR menus and reporting out of the box | Covers the essentials, and leans on the wider Microsoft ecosystem for the rest |
| Where you work | A phone system you log into | Lives inside the app your staff already have open all day |
| Numbers and routing | Local numbers and 1300 and 1800 numbers, IVR, call reporting, multi-branch routing | The same — local, 1300 and 1800 numbers, IVR, call reporting and multi-branch routing |
What about the lines underneath?
Whichever platform you choose, it still needs to connect to the phone network. That's where SIP trunks come in, they replace old ISDN and PSTN lines and work with 3CX. This matters right now because Australia's copper PSTN is being retired on a rolling, premises-by-premises basis as the NBN reaches each address (roughly 18 months' notice per premises), and services like Telstra's DOT are ending too. Moving to a modern business VoIP setup gets you off the gear that's on the way out, with HD voice and video into the bargain.
And none of it works without solid internet. A phone system is only as good as the connection it rides on, so it's worth pairing your choice with the right business internet, whether that's NBN, gigabit fibre or 5G fixed wireless.
So which should an Australian business choose?
Honestly, it comes down to fit, not hype. If you want maximum call-handling control and friendly licensing for a larger or call-heavy team, 3CX usually wins. If your people already work in Teams and want one less app, Teams Phone is the natural choice. We're vendor-neutral, so we'll recommend the platform that actually suits how you work, and we install most systems in days, not weeks.
Frequently asked questions
Is 3CX or Microsoft Teams cheaper?
It depends on your team. 3CX is licensed by simultaneous calls, so larger teams often pay less than they would per-user on Teams Phone. The only way to know for sure is to look at your real usage, which is exactly what our free bill analysis does.
Can I use my existing phone numbers with either system?
Yes. Both 3CX and Teams Phone can keep your current local, 1300 and 1800 numbers. We handle the porting and routing so your customers never notice a change.
Do I need to manage my own SBC for Teams Phone?
No. With our Microsoft Teams Direct Routing, there's no session border controller for you to buy or manage, we look after that side so you just make and take calls in Teams.
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