Microsoft Teams Phone Alternatives for Small Business (2026)
Teams Phone is a paid add-on to Microsoft 365. Compare its real 2026 cost with six cloud phone system alternatives and learn how to switch without downtime.
Quick Answer
The best Microsoft Teams Phone alternatives for small businesses are cloud phone systems that bundle the license, number and calling into one per-user price, such as Dial Raven, Zoom Phone, RingCentral, Nextiva and Dialpad. Teams Phone is an add-on costing $10 to $34 per user per month on top of a Microsoft 365 license.
Dial Raven Editorial Team
VoIP & Business Communications Expert
The best Microsoft Teams Phone alternatives for a small business are standalone cloud phone systems that bundle the license, phone number and calling minutes into one per-user price, such as Dial Raven, Zoom Phone, RingCentral, Nextiva, Dialpad and, for very small teams, Google Voice. Most of them still let you keep Teams for chat and meetings.
Teams Phone is not included in most Microsoft 365 business plans. It is a paid add-on on top of your Microsoft 365 license, and outside calling needs a Microsoft Calling Plan or a separate carrier. After Microsoft's July 1, 2026 price increase on several business plans, many owners are adding up that stack and asking whether a dedicated phone system would be simpler and cheaper. This guide compares the real costs and the options.
Why Are Small Businesses Looking for Microsoft Teams Phone Alternatives?
Three things usually trigger the search: price, complexity and support. On July 1, 2026, Microsoft 365 Business Basic rose from $6 to $7 per user per month and Business Standard from $12.50 to $14, according to UC Today's breakdown of the update. Teams Phone is billed on top of that.
Complexity is the bigger issue for teams without IT staff. Teams Phone is a license that adds phone-system features to Teams; numbers and minutes come from a Calling Plan, Operator Connect carrier or Direct Routing setup. Each path changes who you call when something breaks, and settings like emergency calling have to be configured deliberately.
- Phone costs stacked on top of Microsoft 365 licenses
- Several connectivity options that require Teams admin knowledge
- Annual commitments on most Teams Phone licenses
- Calling tied to the Teams app, which not every employee or front desk wants
- Support split between Microsoft, a reseller and sometimes a carrier
How Much Does Microsoft Teams Phone Cost in 2026?
Microsoft Teams Phone cost depends on how you connect to the phone network. The prices below were listed on Microsoft's Teams business comparison page in October 2026 and match the licensing summary in this Teams Phone FAQ for small businesses. All are per user per month, paid yearly, and require a separate license that includes Teams.
| Teams Phone option | List price | What you get |
|---|---|---|
| Teams Phone Standard | $10 | Phone-system features only; no number or minutes |
| Teams Phone with pay-as-you-go calling (US) | $13 | Number plus per-minute charges |
| Teams Phone with Calling Plan (US) | $17 | Number plus 3,000 outbound domestic minutes per month |
| Teams Phone with domestic and international calling | $34 | Number plus domestic and international minutes |
| Operator Connect or Direct Routing | $10 plus carrier costs | Teams Phone Standard plus a third-party carrier (and SBC for Direct Routing) |
For a typical small office, the realistic bundle is a Microsoft 365 business license plus Teams Phone with Calling Plan. On Business Basic that is $7 + $17, or $24 per user per month, before devices. Microsoft 365 E5 is the main plan that already includes the phone system, and it is priced for larger organizations.
Microsoft Teams Phone Alternatives Compared
The alternatives fall into two groups: full cloud phone systems that replace Teams calling entirely, and lighter tools for very small teams. The table summarizes where each one fits best.
| Alternative | Best for | How it relates to Teams |
|---|---|---|
| Dial Raven | U.S. SMBs that want managed setup and one transparent per-user price | Replaces the phone layer; keep Teams for chat and meetings |
| Zoom Phone | Companies already standardized on Zoom meetings | Replaces Teams calling with the Zoom app |
| RingCentral | Larger SMBs that need many integrations | Full UCaaS replacement or companion to Teams |
| Nextiva | Teams wanting voice plus customer-experience tools | Full replacement for business calling |
| Dialpad | Teams that prioritize AI transcription and summaries | Full replacement with an AI-first app |
| Google Voice | Solo operators and micro teams on Google Workspace | Simple calling tied to Google Workspace |
1. Dial Raven
Dial Raven is a cloud business phone system built for U.S. small and midsize businesses. Starter is $14.99 per user per month and includes a business phone number, unlimited calling in the U.S. and Canada, business SMS and MMS and the mobile app. Pro is $24.99 and adds auto attendant and IVR, call recording and analytics. There are no setup fees or long-term contracts, and onboarding is included.
For a Teams shop, the practical difference is that one provider owns the numbers, routing, desk phones and support. Employees can keep using Teams for meetings and chat while calls run through the Dial Raven app or pre-configured desk phones.
2. Zoom Phone
If your company already runs meetings in Zoom, Zoom Phone keeps calling in the same app. It is a natural choice when you are moving away from Teams altogether. Our roundup of Zoom Phone alternatives covers its trade-offs in more depth.
3. RingCentral
RingCentral is one of the largest UCaaS platforms, with a long list of integrations and contact-center add-ons. It suits growing companies with complex routing, though its pricing tiers and add-ons deserve careful review before signing.
4. Nextiva
Nextiva combines business phone service with customer-experience features such as surveys and CRM-style tools. It fits teams that want calling and customer engagement from one vendor.
5. Dialpad
Dialpad is built around AI features like live transcription and call summaries. It is a fit for sales and support teams that want those features on every call, as long as the AI tiers match the budget.
6. Google Voice
Google Voice is a low-cost option for solo owners and micro teams already on Google Workspace. It covers basic calling, voicemail and texting but offers far fewer routing, recording and admin controls than a full business phone system.
What to Look For in a Teams Phone Alternative
Teams Phone alternatives for small business vary more in what is bundled than in headline price. Before comparing quotes, check each provider against the features your callers actually experience.
- Unlimited U.S. and Canada calling included, not pooled minutes
- Business texting from the same number your customers call
- Auto attendant, ring groups and call queues without extra admin tools
- Desktop and mobile apps plus support for desk phones
- Month-to-month terms or a clear contract length
- Number porting, onboarding and emergency address setup handled for you
- Human support you can reach without a reseller in the middle
Write down which of these you use today on Teams and which you are paying for but not using. That list makes the comparison faster and keeps you from buying a bigger plan than the business needs.
Teams Phone vs VoIP: Keep Teams or Replace It?
The Teams Phone vs VoIP decision comes down to where your people work all day. If every employee lives in Teams on a desktop and calls are mostly internal, adding Teams Phone can make sense. If your business depends on a front desk, desk phones, call queues, texting customers or field staff on mobile, a dedicated VoIP phone system is usually easier to run.
| Situation | Better fit | Why |
|---|---|---|
| Mostly internal calls, everyone works in Teams | Teams Phone with Calling Plan | Calling stays in the app staff already use |
| Front desk or reception handles inbound calls | Dedicated VoIP phone system | Desk phones, auto attendant and queues without Teams admin work |
| You text customers from the business number | Dedicated VoIP phone system with SMS | Calls and texts on one number |
| No in-house IT administrator | Managed VoIP provider | One vendor handles numbers, routing and support |
| Strict Microsoft-only policy | Teams Phone via Operator Connect or Direct Routing | Keeps calling inside Teams with a carrier of your choice |
A middle path is common: keep Microsoft 365 for email, files and meetings, and move only the phone system to a dedicated provider. You stop paying for the Teams Phone add-on, and your staff gets a calling app and desk phones designed for business calls.
What Does Switching Save? A 10-User Example
Consider a 10-person office on Microsoft 365 Business Basic that needs outside calling. Using list prices, Teams Phone with Calling Plan adds $17 per user, or $170 per month on top of the Microsoft licenses. Moving the same 10 users to Dial Raven Starter costs $149.90 per month, with unlimited U.S. and Canada calling and business texting included, while Microsoft 365 stays in place for email and meetings.
The savings get larger if you were planning Direct Routing, which adds carrier and session border controller costs on top of Teams Phone Standard. For a wider view of per-user pricing across providers, see our VoIP pricing comparison.
How to Replace Microsoft Teams Phone Without Downtime
Replacing Microsoft Teams Phone is mostly a numbers-and-routing project. Plan it in this order:
- List every number on Teams Phone, including main lines, direct numbers and resource accounts for auto attendants
- Document current auto attendant menus, call queues, business hours and voicemail
- Choose the new provider and recreate routing before moving any number
- Submit port requests and keep Teams Phone licenses active until the port completes
- Set emergency addresses for every user and location
- Test inbound, outbound, transfers and voicemail, then remove the Teams Phone licenses
Porting is the step that most often causes delays, so start early and match the account details exactly. Our guide to porting a business phone number to VoIP walks through the paperwork. Emergency calling also needs attention whenever the phone system changes; see our E911 compliance guide for what to configure.
Frequently Asked Questions
Is Teams Phone included in Microsoft 365?
Not in most business plans. The Microsoft 365 business plans that include Teams cover chat and meetings, but external calling needs the Teams Phone add-on plus a Calling Plan or carrier. Microsoft 365 E5 is the main plan that includes the phone system.
How much does Microsoft Teams Phone cost per user?
In October 2026, Microsoft listed Teams Phone Standard at $10 per user per month and Teams Phone with a U.S. Calling Plan at $17, paid yearly. Both require a separate license that includes Teams, so the total is usually $24 or more per user.
Can I keep Microsoft Teams and use a different phone system?
Yes. Many businesses keep Microsoft 365 for email, files and Teams meetings and run calls through a separate cloud phone system. Staff use the provider's desktop or mobile app and desk phones for calls while Teams stays in place for collaboration.
Can I keep my phone numbers if I leave Teams Phone?
In most cases, yes. Numbers can be ported from Microsoft Calling Plans or your Teams carrier to a new provider. Keep your Teams Phone licenses active until the port completes so calls keep ringing during the transition.
What is the best alternative to Microsoft Teams Phone for a small business?
For most U.S. small businesses, the best alternative is a cloud phone system that includes numbers, unlimited domestic calling, texting and support in one price. Dial Raven, Zoom Phone, RingCentral, Nextiva and Dialpad all fit, depending on budget, features and the apps your team already uses.
Does Teams Phone include unlimited calling?
Not by default. The U.S. Teams Phone with Calling Plan option includes 3,000 outbound domestic minutes per user per month, and the pay-as-you-go option charges per minute. Many dedicated VoIP plans include unlimited U.S. and Canada calling instead.
Microsoft Teams Phone alternatives make the most sense when you want business calling that just works, without stacking licenses and carrier options. If you are weighing a switch, talk to our team for a quote based on your user count and numbers. We can help map your current Teams routing and handle onboarding.
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