Microsoft Teams Phone has recently reached a significant milestone, surpassing 26 million Public Switched Telephone Network (PSTN) users. This represents a 30% increase since April 2024, securing Microsoft’s role as a leader in enterprise voice solutions. Such growth indicates strong momentum within the market, as organizations transition from traditional systems to cloud-native communications.
Despite this surge, Teams Phone’s penetration remains at only 6% among its 350 million-plus users. According to Patrick Watson, Director of Research at Cavell, this raises essential questions about adoption rates. Many users primarily utilize Teams for collaboration, which reduces their need for external calling. Additionally, pricing and complex licensing models impact the feasibility of an organization-wide rollout.
Challenges arise in mature markets where deployment slows as implementations grow more complex. Providers are introducing features such as analytics, compliance, and contact center integrations to protect shrinking margins typically held by legacy voice services. However, experts like Wilson see “huge whitespace” opportunities. Moving forward, success will be determined by proven return on investment (ROI) extending beyond basic services.
The platform’s growth is a result of dedicated expansion efforts over the last 18 months. One notable achievement was the integration of Teams Phone with Dynamics 365 Contact Center in September 2025. This enhancement unifies telephony, contact center, and collaboration processes, allowing for flexible configuration options within a consolidated cloud environment.
Strategically collaborating with global telecom carriers, Microsoft is fostering fixed-mobile convergence. In the UK, operators like Vodafone and Virgin Media O2 Business now offer Teams Phone Mobile. This service connects a user’s mobile number to their Teams identity, ensuring seamless communication across devices. Consequently, carriers evolve from traditional voice resellers into Unified Communications as a Service (UCaaS) partners, providing a distinct advantage over regular mobile bundles.
Improving telephony management efficiency, Microsoft is simplifying administration tasks via the Teams Admin Center. Responsibilities like DID assignment and routing are now manageable within the same control framework as meetings and messaging. This fosters confidence in larger enterprises to deploy Teams Phone effectively.
As Microsoft Teams Phone transforms into a reliable, enterprise-grade cloud PBX platform, the 26 million user milestone signifies maturity as well as growing adoption. However, moving into 2026, the focus will shift to converting users, addressing the vast yet untapped market. Businesses will seek integrated analytics, AI-driven automation, enhanced contact center connectivity, and economical pricing models that deliver substantial ROI compared to established telephony systems.
For Microsoft and collaborators, the challenge transitions from scaling to demonstrating that Teams Phone can serve as the backbone of enterprise voice communications.
