In an ever-evolving workplace, defined by hybrid and remote work, technological innovation, and dynamic growth, platforms like Microsoft Teams have become essential to many businesses. Combining innovative solutions for productivity with conferencing and meeting tools, MS Teams helps keep businesses connected, informed, and empowered.
However, to make Microsoft Teams a comprehensive solution for unified communication and collaboration, companies still need a way to connect the system to their PSTN stack. While Microsoft offers its own phone licenses for this purpose, they’re often limited in terms of global reach, affordability, and advanced features.
Operator Connect and Direct Routing are two solutions that allow companies to “bring their own carrier” into the Teams ecosystem. They enable cost savings, high-quality calling, and exceptional global reach. The only problem? Many companies are confused about the licenses they need to implement either Direct Routing, or Operator Connect.
The Licenses Needed for Direct Routing and Operator Connect
Both Direct Routing and Operator Connect share similar benefits for Microsoft Teams users. They enable companies to leverage the services of their preferred carriers, to unlock exceptional communication opportunities worldwide. They also offer access to advanced features and capabilities, that allow organizations to expand their communication ecosystem.
While there are some significant differences between the two options, from how they enable PSTN connectivity, to how simple they are to implement, the licensing requirements for both options are surprisingly similar.
Telnyx Head of Partnerships, Eric Bernhold notes: “What we’ve found really interesting is so many people think Direct Routing and Operator Connect are completely different solutions. In our view, Operator Connect is the next evolution of Direct Routing. The required Microsoft licenses are basically the same too! It’s mainly the administrator experience which is different.”
Whether you choose Operator Connect or Direct Routing, you’ll need 3 things:
A Microsoft 365/Office 365 License with Teams
Both Operator Connect and Direct Routing require every user to have an appropriate Microsoft 365, or Office 365 license, with access to Teams. Currently, Microsoft is in the process of unbundling Microsoft Teams from its Office solutions, so it’s important to ensure any license you purchase includes the Microsoft Teams app.
There are numerous options available for accessing Teams, including Microsoft Teams Essentials, which doesn’t include any office apps (like Word or PowerPoint), but can be bundled with Microsoft Teams Phone (another essential license for PSTN connectivity).
For companies in search of a comprehensive Office and Teams package, the most common licenses are Microsoft 365 E3 (with Teams), or E5 (with Teams). Notably, the E5 license also includes the Microsoft Teams Phone Standard license.
A Microsoft Teams Phone Standard License
The Microsoft Teams Phone Standard License (previously known as the Phone System license), is necessary for every employee in your tenant that requires access to a phone number. This is the license that gives users call control and private exchange (PBX) capabilities.
All Teams Phone Standard licenses give you access to features like call forwarding, call park, cloud voicemail, auto attendants, call transfer, call queues, and caller ID. However, they don’t include PSTN phone connectivity, which takes us to the final license you need for both Operator Connect and Direct Routing with Microsoft Teams.
A Calling Plan (or PSTN solution)
While users can purchase calling plans directly from Microsoft for both international and domestic calling, these calling plans are often relatively limited. Fortunately, with Direct Routing and Operator Connect, users have a different way to connect Microsoft Teams to the Public Switched Telephone Network (PTSN). They can bring their own carriers into the system.
This essentially means you can retain the calling licenses and phone system you already have with your preferred carrier. However, it’s worth noting that with Operator Connect, you’ll be limited to the carriers approved by Microsoft. With Direct Routing, you can choose to bring any telephony provider to Microsoft Teams.
The Core Difference: A Certified SBC
Both Operator Connect and Direct Routing require the same Microsoft licenses for Teams, and Phone (PBX) services. However, Operator Connect links a company’s PSTN to Teams through the cloud. It allows users to set up and manage numbers and connections via the Teams admin portal, add new numbers and connections quickly, and run their system in the cloud.
Direct Routing, on the other hand, connects a customer’s existing PSTN trunks or SIP trunks to the Teams platform through a Session Border Controller (SBC) device. This is the solution that handles transferring secure media between a customer’s trunks and the Teams platform.
Direct Routing requires more of a technical setup than Operator Connect, but also gives users more control over connections, call-routing, and DIDs. Plus, it empowers users to integrate more complex features, like speech-to-text technology and call recording into Teams.
Leveraging Operator Connect or Direct Routing for Teams
Both Operator Connect and Direct Routing offer companies a convenient way to connect their PSTN solutions to the cloud-based Microsoft Teams platform. However, the methods used to bridge the gap between these systems mean each solution appeals to companies in different ways.
Typically, cloud-first customers prefer to enable enterprise voice for Teams using Operator Connect. This simple solution makes it easy to integrate existing and new telephony infrastructure into Teams with just a few clicks. Plus, it ensures you can manage everything from within your admin portal (without using tools like PowerShell), and eliminates the need for additional hardware.
Direct Routing, on the other hand is often the better option for companies with complex on-premises, or hybrid technology stacks. Though setting up and managing the system is more complex, it enables full legacy integration, and complete control over the communication landscape. Additionally, direct routing allows users to access any telephony provider.
Making the Right Choice
Though the licenses required are virtually the same for both Direct Routing and Operator Connect, depending on how you handle your SBC technology, making the right decision for your company depends on the level of flexibility you need.
The good news is that with the right partner, companies can mitigate the additional costs of setting up an SBC solution. Leading Microsoft partner Telnyx is a Tier 1 carrier with direct access to global telecom networks. From June 2024, Telnyx offers their own Microsoft-certified SBC, as well as coverage across 46 countries, placing them at the top of the list of providers in the landscape based on location coverage.
It offers access to private, multi-cloud networks for high reliability and redundancy, as well as intuitive portals where companies can manage their ecosystem.
Telynx doesn’t charge anything for SBC connectivity on Direct Routing, meaning you get the same experience and cost structure whether you choose Operator Connect or Direct Routing. This gives you the absolute freedom to choose the connectivity option that works best for you, without additional costs.
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