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.




