Skip to content
DialPhone
Start free trial

Solution · ms teams

Microsoft Teams Phone System with AI

Add AI calling, SMS, and fax inside Microsoft Teams. Direct Routing or Operator Connect, 99.999% uptime, free number porting. Keep Teams — add AI.

Microsoft Teams, now with AI-powered calling, SMS, and fax

Microsoft Teams Phone is a serviceable dial tone. DialPhone adds what it’s missing: AI-drafted SMS, a $59/month AI receptionist that handles 24/7 call answering, Proactive Workflow Automation that logs every call to your CRM, 100 percent interaction analytics for the contact center, and published per-user pricing instead of per-country Calling Plans. Users never leave Teams — the features appear inside the Teams client where they already live.

Embedded inside Microsoft Teams

No context switching. No separate softphone. No second app with its own notifications.

  • Calling in the Teams calling app with DialPhone carrier connectivity
  • SMS as a native Teams app — shared inboxes, AI drafting, compliance built in
  • Online fax inside Teams — send and receive from the same interface
  • AI transcription and summaries — every Teams call produces a searchable transcript with action items
  • CRM logging — calls post to Salesforce, HubSpot, Dynamics 365 automatically
  • Mobile — the Teams mobile app uses DialPhone connectivity transparently

How it connects

DialPhone is a Microsoft-certified Operator Connect partner. Provisioning is a few clicks in the Teams admin center: you add DialPhone as a voice operator, assign numbers to users, and calling works immediately. No SBC. No custom dial plan. No project plan measured in months.

  • Deploy in hours for small rollouts, days for enterprise
  • Certified by Microsoft — listed in the Operator Connect directory
  • Predictable per-user pricing — no Calling Plan per-country gotchas
  • Global reach — numbers in 46+ countries with local regulatory compliance

Direct Routing (for complex deployments)

Direct Routing suits customers with:

  • Existing SBC investments (AudioCodes, Ribbon, Oracle SBC, etc.)
  • Multi-region requirements that span both Operator Connect and non-OC countries
  • Complex custom routing (emergency services integration, survivable branch appliances, specialized recording)
  • Hybrid or phased migrations from legacy PBX

DialPhone SBC services and configuration support are included in enterprise engagements.

Mixed deployments

Nothing forces a single integration model. A multinational can run Operator Connect in the US and UK, Direct Routing in a country where Operator Connect isn’t yet available, and native Teams Calling Plans in a country where DialPhone doesn’t have a local presence — all within one Microsoft 365 tenant.

AI features Microsoft Teams Phone doesn’t include

CapabilityTeams Phone aloneTeams + DialPhone
PSTN calling✓ (via Calling Plan or operator)
Call transcriptionCopilot (additional license)✓ Real-time with sentiment
AI meeting summariesCopilot
AI SMS drafting
Proactive workflow automation
Shared SMS team inboxes
AI Receptionist (24/7 answering)✓ From $59/mo
Online fax inside Teams
Contact center (UCaaS+CCaaS unified)Dynamics 365 Customer Service (separate)✓ Integrated
100% interaction analytics
Published pricingPer-country Calling Plans✓ $24–$54/user

Microsoft Copilot adds some AI features inside Teams, but they require additional per-user licenses and they cover Teams-meeting AI rather than PSTN-call AI. DialPhone covers the phone system with AI as a default, not an upgrade.

Keep your numbers — global porting

Free porting from your current carrier to DialPhone in 2 to 5 business days. International numbers port across 46+ countries. Emergency-services numbers (E911 in the US, equivalent abroad) maintain regulatory compliance through the transition with dynamic location support.

Enterprise compliance

SOC 2 Type II audited. HIPAA BAA available. GDPR, FINRA, PCI-DSS compliant. Microsoft Teams’ own BAA covers the Teams chat, meeting, and file workloads. DialPhone’s BAA covers voice, SMS, and fax. Together they provide end-to-end HIPAA coverage — which is what regulated customers need.

See the full trust center →

Pricing

DialPhone’s pricing applies the same way in the Teams integration as it does standalone:

  • Core — $24/user/mo — calling, SMS, fax, meetings, basic AI
  • Advanced — $34/user/mo — adds AI SMS drafting, Proactive Workflow Automation, CRM sync
  • Ultra — $54/user/mo — adds real-time analytics, priority support, custom API

Teams add-on costs: you still need Microsoft 365 Business Premium (or E1/E3/E5) and Teams Phone Standard license for each user. DialPhone provides the PSTN service and the AI — Microsoft provides Teams itself.

See full pricing → · See the Microsoft Teams integration →

Who this is for

  • Microsoft 365 shops already standardized on Teams for chat and meetings
  • Regulated industries (healthcare, financial services, legal) using Teams for collaboration and needing compliance on voice/SMS/fax
  • Global enterprises that need a single voice provider across multiple countries with different Operator Connect / Calling Plan availability
  • Mid-market IT teams that want to deploy once in the Teams admin center and be done

Start a free 14-day trial → · Book a Teams-specific demo

Microsoft Teams Phone System with AI — FAQ

How does DialPhone work with Microsoft Teams?
DialPhone adds external calling, business SMS, and online fax inside the Microsoft Teams client without forcing users to switch apps. You connect via Operator Connect (one-click provisioning in the Teams admin center — certified partner) or Direct Routing (SBC-based integration for complex routing requirements). Users keep their Teams identity, meeting controls, and call history. DialPhone adds AI features on top: real-time transcription with sentiment, AI SMS drafting, CRM auto-logging, and the Smart Virtual Concierge AI receptionist.
Do I need Operator Connect or Direct Routing?
Operator Connect is the right choice for 85 percent of deployments — fast provisioning via the Teams admin center, certified by Microsoft, no SBC required, predictable pricing per user. Direct Routing fits customers with existing SBC infrastructure, complex dial-plan requirements, or regional regulatory needs that demand SBC-level control. DialPhone supports both, sometimes in mixed deployments for different business units within the same enterprise.
Can I use my existing Teams licenses?
Yes. DialPhone supplements your existing Microsoft 365 E1/E3/E5 or Business Premium licenses. You need a Teams Phone Standard license (or E5 which includes it) to receive external calls through Teams. DialPhone provides the PSTN connectivity, the numbers, the calling features, the SMS, and the fax — Microsoft provides the Teams client, identity, and meetings. The combined bill is often lower than Microsoft Calling Plans with fewer per-country workarounds.
Does AI SMS work inside Teams?
Yes. DialPhone embeds SMS sending and receiving inside the Microsoft Teams client as a Teams app. Users send and receive business SMS from the same interface where they chat with colleagues. AI drafting suggests replies based on the full conversation history and CRM context. Shared team inboxes prevent collision when multiple users respond from the same business number.
Is it HIPAA compliant?
Yes. DialPhone signs a Business Associate Agreement and meets HIPAA Security Rule requirements. Microsoft Teams itself is HIPAA-eligible when covered by Microsoft's BAA. Together the Teams + DialPhone stack covers the voice, SMS, and fax channels under HIPAA — the Microsoft BAA covers Teams chat, meetings, and file storage. Both BAAs are required for end-to-end HIPAA coverage of unified communications workloads.

See if DialPhone
fits your team.

Start a 14-day free trial or talk to a specialist about microsoft teams phone system with ai.

Call sales Start free trial