Microsoft Teams Phone: Setup and Extension Assignment
Microsoft 365
Teams Phone
calling
extension
Direct Routing
By Cade · Updated 03/05/26 07:51 AM
Microsoft Teams Phone turns Teams into a full business phone system. To use it, users need a Teams Phone license (included in Microsoft 365 Business Voice or as an add-on) and a phone number assigned through Microsoft Calling Plans or Direct Routing via a SIP trunk.
For Microsoft Calling Plans: purchase in the M365 admin center under Billing > Purchase services. Assign a phone number to a user in the Teams admin center (teams.microsoft.com) under Users > select user > Account > Phone number. Choose a number from the available inventory.
For Direct Routing (connecting your existing SIP trunk): requires an SBC (Session Border Controller) certified for Teams. Configure in the Teams admin center under Voice > Direct Routing. This option is preferred for businesses that want to keep their existing carrier or toll-free numbers. After assignment, users can make and receive calls in the Teams desktop app, mobile app, or a certified Teams-compatible desk phone.