Quick Answer: Microsoft offers three calling options. Operator Connect suits SMEs seeking simplicity and Microsoft SLAs. Direct Routing suits enterprises with existing PBX investments and network control needs. Calling Plans are for businesses needing only cloud voice without on-premise infrastructure. Resellers should bundle all three across different customer segments to maximise wallet share.
The Three Microsoft Teams Phone Models Explained
Microsoft Teams Phone is a cloud-based PBX sold via three distribution channels. Each channel has different economics, customer fit, and reseller margins. Understanding when to sell each is critical to maximising revenue and customer satisfaction.
| Feature | Operator Connect | Direct Routing | Calling Plans |
|---|---|---|---|
| PSTN Provider | You (reseller). You partner with Microsoft-approved operator (BT Cloud Voice, Vodafone, Virgin). Operator handles SIP trunk. | Customer or reseller provides PSTN connection via SIP trunk. Microsoft does not provide calling minutes. | Microsoft provides PSTN connection and calling minutes. Direct from Microsoft to customer. |
| Infrastructure Requirements | None. Pure cloud. Operator handles SIP trunk infrastructure. | Customer hosts Session Border Controller (SBC). Reseller may host SBC in cloud. | None. Cloud-only. |
| Calling Pricing Model | Monthly per-user licence + consumption (minutes/calls). Wholesale per-minute rates: £0.007-£0.015 UK, £0.008-£0.020 international. | Wholesale rates on SIP trunk capacity. Typical: £5-£12 per trunk/month + per-minute rates (£0.004-£0.012). | Microsoft sets per-user pricing (typically £4-£8/user/month for unlimited UK calling). |
| Reseller Margin (% typical) | 25-40%. You invoice customer. Partner (BT etc.) invoices you wholesale. | 15-30%. You provide SIP trunk; customer buys Teams Phone directly from Microsoft. | 0-5%. Customer buys from Microsoft. You own support relationship only. |
| Customer Lock-In | High. Switching providers requires new SIP trunk and potential Teams Phone reconfiguration. | Medium. Trunk switching is simple. Teams Phone stays with customer (not reseller-specific). | None. Customer buys from Microsoft directly. No reseller lock-in. |
| Microsoft SLA Responsibility | Microsoft guarantees 99.9% Teams availability. Operator (partner) guarantees SIP trunk SLA (usually 99.5%). | Microsoft guarantees 99.9% Teams availability. Customer/reseller responsible for SBC and trunk SLA. | Microsoft guarantees 99.9% service uptime. |
| Emergency Call Routing | Partner (operator) manages 999/112 compliance, location data, and resilience per Ofcom. | Customer or reseller responsible for 999/112 compliance. Must register with Ofcom if you’re the licensed network operator. | Microsoft manages 999/112 compliance and location data. Customer provides registered address. |
| Best For | SMEs (10-500 users). Simple deployment. Want Microsoft SLA. Don’t want to manage SBCs. | Enterprises with existing PBX or SIP trunk investments. Full control of network. Hybrid calling scenarios. | Organisations with simple calling needs. No legacy infrastructure. Want minimal reseller involvement. |
Reseller Packaging and Pricing Strategy
The UK market offers three go-to-market packaging approaches. Premium resellers bundle across multiple options to increase customer stickiness and revenue per seat.
| Package Tier | Included Services | Target Customer Size | Wholesale Cost to Reseller | Suggested Resale Price | Reseller Margin | Monthly Recurring Revenue (MRR) per 50 Users |
|---|---|---|---|---|---|---|
| Operator Connect Core | Teams Phone licence. Unlimited UK calls. Basic admin dashboard. | 10-50 users | £4.20/user/month | £7.50/user/month | 78% | £375 |
| Operator Connect Professional | Teams Phone licence. Unlimited UK + EU calls. Call recording. Advanced reporting. Phone number management. | 51-150 users | £5.80/user/month | £11.00/user/month | 90% | £550 |
| Operator Connect Enterprise | Teams Phone licence. Unlimited calls (UK + international). Call recording + encryption. Dedicated account manager. SLA guarantee 99.95%. | 150+ users | £8.40/user/month | £16.50/user/month | 97% | £825 |
| Direct Routing (Customer-Owned SBC) | SIP trunk provisioning. SBC configuration support. Monitoring and alerting. £0.008/minute PSTN rates. | 200+ users | £450/month trunk fee + minutes | £900/month trunk fee + £0.015/minute | 100% | £900+ |
| Direct Routing (Cloud SBC Hosting) | Cloud-hosted SBC in AWS/Azure. SIP trunk. 24/7 proactive monitoring. Included failover capacity. | 100-300 users | £300/month SBC + £450 trunk | £700/month SBC + £850 trunk | 100% | £1,550 |
| Calling Plans (Support Only) | Helpdesk support. Basic training. Customer billing aggregation. | Any size (cloud-first) | £0 | Support retainer: £150-£500/month per 50 users | 100% | £150-£500 |
Decision Matrix: Which Option for Which Customer?
Use this matrix to align customer needs with the right calling model. Consider technology stack, team size, internal IT resource, and willingness to manage infrastructure.
| Customer Profile | Recommended Calling Model | Rationale | Reseller Value-Add |
|---|---|---|---|
| Cloud-first SME (25-100 users). No on-premise infrastructure. Wants simplicity. | Operator Connect | Microsoft handles Teams. Operator (you or partner) handles SIP trunk. Fast deployment. Microsoft SLA. | Manage SIP trunk, handle onboarding, provide 24/7 support, migrate from legacy PBX. |
| Hybrid SME (50-100 users). Has on-premise Avaya/Cisco PBX. Wants to move gradually to cloud. | Direct Routing + existing PBX | Connect PBX to Microsoft SBC. Teams phones and desk phone users coexist during migration. | SBC setup and configuration. PBX-to-Teams migration planning. Training on hybrid calling. |
| Enterprise (200+ users). Complex network. Existing SIP trunk and SBC investment. | Direct Routing (customer SBC) | Leverage existing SIP trunk. Customer keeps network control. Full Teams Phone features available. | SBC configuration, SIP trunk optimisation, 24/7 SOC monitoring, disaster recovery planning. |
| Multi-site enterprise (300+ users). Global calling needs. Network redundancy required. | Direct Routing (cloud SBC hosted) | Reseller hosts SBC in multiple regions for failover. Customer owns trunk optionally. Reduces CAPEX. | Cloud SBC infrastructure. Traffic engineering. Compliance and audit support. Dedicated account team. |
| Distributed team (remote-first). No site voice infrastructure. Standard features only. | Calling Plans | Pure cloud Teams Phone + Microsoft PSTN. No on-premise infrastructure needed. Fast onboarding. | Migration support. User training. Billing aggregation with other Microsoft services. |
| Specialist use case (contact centre, EPOS integration). Needs call recording, IVR, third-party APIs. | Direct Routing + third-party CCaaS platform | Teams Phone core voice. CCaaS (Five9, NICE, Avaya Cloud) manages contact centre logic and recording. | Integration architecture. CCaaS partner engagement. Ongoing support for hybrid environment. |
Frequently Asked Questions
Can a customer use Operator Connect from one reseller and Direct Routing from another?
Technically yes, but operationally complex. A customer would have two separate Teams Phone environments or two calling paths for the same tenant. Standard practice: one calling model per customer to avoid confusion and duplication.
What happens to Operator Connect customers if the operator (e.g., BT Cloud Voice) discontinues service?
Microsoft requires operator partners to maintain minimum SLA and provide 30-day notice of service changes. Resellers can migrate customers to Direct Routing or another Operator Connect partner within 30 days. Plan migration pathway in advance.
Do I need a Teams Phone licence to resell Calling Plans?
No. Calling Plans are sold by Microsoft directly to customers. A reseller can bundle support or add-on services (recording, reporting) but the base Teams Phone licence and calling plan comes from Microsoft, not the reseller.
What is the margin difference between Operator Connect and Direct Routing?
Operator Connect: 25-40% on calling and licence. Direct Routing: 15-30% on SIP trunk and calling only (customer buys Teams Phone from Microsoft). Direct Routing offers higher absolute revenue if you host cloud SBC infrastructure.
How do I handle emergency calling compliance across the three models?
Operator Connect: Your partner (operator) handles 999/112 and location data. You must ensure they comply. Direct Routing: You are responsible if you provide the SIP trunk and SBC. You must register with Ofcom if you’re the licensed ECN operator. Calling Plans: Microsoft handles 999/112; customer provides registered address.
Can Teams Phone replace a legacy PBX for all features?
Core voice and basic features yes. Niche features (custom IVR logic, third-party integrations, EPOS phone-less mode) may require a CCaaS platform or SIP gateway. Audit the customer’s existing PBX feature list before committing to a migration timeline.
What SLA should I commit to for Operator Connect?
Microsoft guarantees 99.9% Teams availability. Your operator partner typically commits 99.5% SIP trunk uptime. In your customer SLA, commit to the lowest of the two: 99.5%. If you need 99.95%, choose a Direct Routing cloud SBC model where you control uptime.
How do I price international calling in Operator Connect?
Wholesale rates vary by destination (£0.008-£0.030/minute). Bundle as tiered calling plans: unlimited UK, unlimited UK + EU (add-on £2/user/month), or pay-as-you-go international (mark-up to £0.020-£0.040/minute). Track consumption and adjust pricing quarterly.
Sources
Microsoft Teams Phone and Calling Plans
Microsoft Teams Direct Routing Documentation
Ofcom Operator Connect Requirements and Compliance
Gartner UCaaS and Cloud PBX Analysis
UCaaS Market Trends and Operator Connect Insights
Partner Playbook: Teams Phone Launch Package
| Deliverable | Responsible | Timeline | Status |
|---|---|---|---|
| Operator Connect partner agreement signed (BT, Vodafone, etc.) | Legal + Procurement | Week 1 | [ ] |
| Teams Phone licence and calling pricing agreement with Microsoft | Sales + Legal | Week 1 | [ ] |
| Customer segmentation and pricing tiers documented | Product + Finance | Week 2 | [ ] |
| Sales playbook: three models explained with decision trees | Sales enablement | Week 2 | [ ] |
| Migration assessment template (PBX to Teams Phone) | Technical consulting | Week 2 | [ ] |
| Emergency calling compliance checklist | Compliance | Week 1 | [ ] |
| Support team training on three models and troubleshooting | Support + Training | Week 3 | [ ] |
| Pilot deployment with 3 customers (one per model) | Implementation team | Week 4 | [ ] |
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