Microsoft Teams Direct Routing vs Calling Plans: Cost Comparison
Direct Routing or Microsoft Calling Plans for Teams? How they compare on cost, control and flexibility for Australian business.
If your team already lives in Microsoft Teams, it makes sense to use it for phone calls too. The catch is deciding how Teams connects to the outside world. You have two main routes: Microsoft's own Calling Plans, or Direct Routing through an Australian carrier. They both let you ring real phone numbers from Teams, but the cost and flexibility can differ a lot. Here is a plain-English comparison to help you work out which one suits your business.
The two ways Teams makes phone calls
Calling Plans are bought straight from Microsoft as a per-user, per-month add-on, with a bundle of call minutes included. It is the simplest path: everything sits inside your Microsoft 365 bill, and there is no separate carrier to set up.
Direct Routing connects Teams to the public phone network through a third-party telco using SIP trunks. Microsoft has published the Direct Routing standard precisely so businesses can bring their own carrier instead of being locked to Microsoft's calling rates. With SIP Connect's Teams Direct Routing, there is no Session Border Controller for you to buy, configure or manage. We handle the carrier-side plumbing; your staff just dial from Teams as normal.
Where the cost difference comes from
The headline question is per-user pricing. Calling Plans charge a fixed monthly fee for every user who needs to make external calls, whether they make two calls a week or two hundred. For a small team that can be fine. For a larger or mixed workforce, you end up paying for a lot of minutes that nobody uses.
Direct Routing usually wins on price for three reasons:
You pay carrier rates, not Microsoft retail rates.
Australian call rates through a local carrier are often lower than the bundled Microsoft equivalent.
You only license the users who need outbound calling.
Reception and sales reps might need full external calling; back-office staff often do not.
You keep your existing numbers and number ranges
without re-buying them through Microsoft, including any 1300 and 1800 numbers with their call reporting and IVR.
Calling Plans win on simplicity. If you have a handful of staff who all make roughly the same number of calls and you value a single Microsoft invoice over squeezing out the lowest rate, they can be the quicker, tidier option. Honest answer: it depends on your call volume and headcount, not on which approach is "better" in the abstract.
A quick way to picture it
Think of Calling Plans like an all-you-can-eat buffet priced per head: easy, but you pay the same whether you eat or not. Direct Routing is closer to ordering off the menu through a local supplier: a bit more setup, but you pay for what you actually use.
Why timing matters right now
Two things are nudging Australian businesses to review their Teams calling. First, the copper PSTN is being retired premises-by-premises as the NBN rolls out, so older phone lines are ending anyway. Second, Telstra Calling for Office 365 is being withdrawn, which leaves many organisations needing a fresh way to connect Teams to the phone network. Direct Routing through an independent carrier is one of the cleaner ways to land softly through that change. If you are also rethinking lines and trunks, our SIP trunks and business VoIP pages explain how the underlying voice side works.
It is not only about Teams
Teams is a great fit for some businesses, but it is not the only good answer. If you want free inter-branch calling, built-in video and a system licensed by simultaneous calls rather than per extension, a 3CX phone system may cost less again. We are vendor-neutral, so we will point you to whatever actually fits, whether that is Teams, 3CX or a hosted PBX. You can see the full range on our business phone systems page.
Frequently asked questions
Do I need an SBC for Teams Direct Routing?
Not when you go through SIP Connect. A Session Border Controller is normally required to connect Teams to a carrier, but we run and manage that for you, so there is no extra box for your team to buy or maintain.
Can I keep my existing phone numbers?
In most cases, yes. Direct Routing is designed to carry your current numbers, including main lines and any 1300 or 1800 service numbers, so customers keep dialling the same number they always have.
Which option is cheaper for my business?
For low, even call volumes across a few users, Calling Plans can be simplest. For larger teams, mixed call habits or anyone wanting local carrier rates, Direct Routing usually costs less. The only way to know for sure is to look at your real numbers.
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