3CX vs Microsoft Teams Phone: Which Is Right for Your Melbourne Business or Should You Run Both?

If your team already lives in Teams for chat and video, Microsoft Teams Phone is the tidier choice. If you need a serious phone system with advanced call handling, flexible licensing, or contact centre features, 3CX is the right pick. And if you want the best of both worlds? They actually integrate natively, so you do not always have to choose.

Melbourne businesses shopping for a new phone system keep landing on the same shortlist: 3CX on one side, Microsoft Teams Phone on the other. Both promise to replace the old office PBX. Both support VoIP calling. Both have grown enormously over the past few years. But they were built for very different purposes, and the wrong choice costs you money and headaches for years.

This guide cuts through the noise. We will look at what each platform actually does well, where each falls short, what the real costs look like in 2026, and when running both together makes sense for an Australian business.

What Are These Two Platforms, Really?

Before comparing features, it helps to understand what each product was actually built to do. The framing shapes everything else.

Microsoft Teams Is a Collaboration Platform That Added Calling

Microsoft Teams is a collaboration platform at its core. It started as a chat and video tool inside Microsoft 365 and later bolted on voice calling via Teams Phone. The calling features are solid for most office workers, but they sit inside a tool designed primarily for internal messaging and meetings. The phone system capability is an add-on to a collaboration suite, not the other way around.

This matters because the Teams interface, the admin experience, and the licensing model all reflect that origin. Voice is one feature among many, and it shows.

3CX Is a Phone System That Added Collaboration

3CX started as a software-based PBX, which means it was purpose-built as a phone system from day one. Over time it added video conferencing, live chat, WhatsApp integration, and a web client, but telephony has always been the foundation. Call queues, IVR, call recording, SIP trunk management, and multi-site routing are native, mature features, not afterthoughts.

Using 3CX gives you a hosted phone system that happens to include collaboration tools, rather than a collaboration tool that happens to support phone calls.

Phone System vs Phone System: Feature by Feature

Here is how the two platforms stack up across the features that matter most for a Melbourne business:

Feature	3CX	Microsoft Teams Phone
Core purpose	Dedicated phone system (PBX)	Collaboration platform with calling add-on
VoIP calling	Yes, carrier-agnostic via SIP trunk	Yes, via Microsoft Calling Plans or Direct Routing
Call queue management	Advanced, built-in, free	Available but requires add-ons and higher tiers
IVR / auto attendant	Fully featured, visual designer	Basic auto attendant included
Call recording	Built-in, flexible rules	Requires additional Microsoft 365 licence or third-party
Direct Routing (BYO carrier)	Yes, native SIP trunk support	Yes, via Direct Routing with a session border controller
Contact centre features	Full suite including wallboards, barge, whisper	Limited without costly CCaaS add-ons
Microsoft 365 integration	Native Teams integration available	Native, built into Microsoft 365 ecosystem
Mobile apps	iOS and Android, full feature parity	iOS and Android via Teams app
Video conferencing	Built-in	Best in class
Licensing model	Per simultaneous call (V20)	Per user per month
Number porting	Supported via SIP trunk provider	Supported via Microsoft Calling Plans or carrier
On-premise option	Yes (self-hosted or cloud)	Cloud only
3CX management console	Full admin portal	Teams admin centre

Calling Plan and Licensing Costs: What You Actually Pay in 2026

Pricing is where a lot of businesses get caught out. The headline per-user price rarely tells the full story, and the total cost of ownership can look very different once you add everything up.

• Microsoft Teams Phone Costs

To make and receive external calls through Teams, you need at least a Microsoft 365 Business subscription (Business Standard or higher works for most), plus Teams Phone Standard as an add-on. Teams Phone requires a separate licence on top of your Microsoft 365 licence.

From there, you have two options to connect to the public phone network (PSTN calling):

• Microsoft Calling Plans: Microsoft acts as your carrier and charges per user per month, plus per-minute rates for outbound calls. Microsoft calling plans are straightforward to set up but can get expensive at scale, particularly for businesses with high call volumes.
• Direct Routing: You keep your own SIP trunk provider and connect it to Teams via a certified session border controller. This gives you more control over costs but adds complexity. Teams phone via Direct Routing is popular for larger Melbourne businesses that already have carrier relationships.

Teams Phone Standard add-on costs have shifted during 2025-2026. As a rough guide, you are looking at AUD $10-16 per user per month on top of your Microsoft 365 subscription, before carrier costs. For a 30-person office already paying for Microsoft 365, that adds up quickly.

• 3CX Licence Cost and Pricing Model

3CX licensing changed significantly with V20 in January 2026. The new model charges based on simultaneous calls rather than total users, which is a big deal for businesses where not everyone is on the phone at the same time. A company with 50 staff might only need 8-10 simultaneous call licences, which keeps 3CX licence cost very competitive.

There are three tiers: SMB (entry level), PRO (mid-market), and Enterprise (full contact centre features). Each tier unlocks progressively more advanced features.

On top of 3CX licensing, you pay for your SIP trunk separately. Australian SIP providers are competitive, and you can often get a better deal than Microsoft’s bundled calling plans, especially if you have high outbound call volumes.

For a fair comparison of total cost of ownership, make sure you account for: 3CX licence, SIP trunk costs, handsets (if needed), hosting (if self-managed), and support. A good 3CX partner can help you model this properly in AUD for your specific situation.

When Teams Phone Makes Sense for Your Business

There are real scenarios where Team Phone is the right call (no pun intended). Here is when it genuinely shines:

• Your team already uses Microsoft 365 heavily. If your team already uses Microsoft 365 for email, SharePoint, and daily collaboration, adding Teams Phone keeps everything in one ecosystem. Less friction, fewer logins, a familiar interface.
• You have a Microsoft 365 Business Standard or above subscription. If you are already paying for Microsoft 365 at a tier that includes Teams, the incremental cost to add calling is lower.
• Your calling needs are basic. If you mostly need to make and receive calls, run a small queue, and transfer between staff, Teams handles this well without overcomplicating things.
• You prefer a single vendor. Some IT teams prefer to consolidate vendors. Microsoft 365 covers email, productivity, video, chat, and calling in one bill and one support relationship.
• You already use Microsoft 365 tenant for identity and access management. The Microsoft 365 deployment for Teams Phone integrates cleanly with Azure Active Directory.

When 3CX Is the Right Choice for Melbourne Businesses

3CX wins in more scenarios than most businesses realise, especially once you look beyond the headline numbers. Choose 3CX when:

• You need a serious phone system. If your business relies on the phone for sales, support, or customer service, you need proper call queue management, IVR, call recording, and reporting. These are core 3CX features, not bolt-ons.
• You have a large team but not everyone is always on a call. The simultaneous call licensing model means you are not paying per user. A business with 100 staff who share 15 concurrent calls pays far less than per-user models would charge.
• You want full control over your calling costs. With a carrier-agnostic SIP trunk, you choose your provider and negotiate your rates. You are not locked into Microsoft’s calling plan pricing.
• You need multi-site or contact centre features. Full 3CX at the PRO or Enterprise tier includes wallboards, barge and whisper, advanced queue strategies, and detailed reporting that Teams cannot match without expensive add-ons.
• You want on-premise or hybrid deployment. If data sovereignty or compliance is a concern, 3CX deployment can be self-hosted. Microsoft Teams is cloud only.
• You need a standalone phone system that does not depend on your Microsoft 365 subscription status.
• You are a small business that wants enterprise features at a sensible price. 3CX is genuinely scalable from 5 users to 500 without a complete pricing reset.

Teams and 3CX Together: The Integration Option

Here is the thing most comparison articles miss: you do not always have to pick one. 3CX with Microsoft Teams integration is a real, supported option. 3CX integrated with Teams means your staff can make and receive calls from within the Teams interface, using their familiar Teams app, while the phone system itself is powered by 3CX via Direct Routing.

This native Teams integration lets you:

• Keep Teams as the front end your staff use every day.
• Run 3CX as the back-end phone system with all its advanced features.
• Use your own SIP trunk provider for better call rates.
• Access 3CX’s full call queue, IVR, and recording capabilities, inside Teams.

Microsoft Teams phone and 3CX working together via Direct Routing is increasingly popular with Melbourne businesses that have already invested in Microsoft 365 but need more from their phone system than native Teams phone delivers. The session border controller sits in the middle, handling the connection between your SIP trunk and Teams.

Teams phone’s native calling features handle basic make and receive calls, but when you need the power of a dedicated business phone system, 3CX via Direct Routing fills that gap without forcing your staff to change the app they work in all day.

This setup does require a Microsoft 365 tenant and some configuration work. A managed 3CX deployment from a local 3CX partner makes this significantly easier to get right.

Direct Routing and SIP Trunk: Understanding the Connection

If you are evaluating either platform for a Melbourne business with more than a handful of staff, you will encounter Direct Routing and SIP trunks as key technical decisions.

A SIP trunk is your connection to the public telephone network over the internet. Instead of traditional phone lines, a SIP trunk provider routes your calls digitally, which is cheaper and more flexible. Both 3CX and Teams Phone support SIP trunks, but the way they connect differs.

• 3CX and SIP trunks: 3CX connects directly to your SIP trunk provider. Setup is done inside the 3CX management console, and you can switch providers or add redundancy without rebuilding your entire phone system. 3CX supports hundreds of SIP trunk providers out of the box.
• Teams Phone and Direct Routing: Microsoft Teams does not connect natively to standard SIP trunks. To use your own carrier, you need Direct Routing, which routes calls through a certified session border controller before they reach Teams. This adds a layer of complexity and cost, though it does give you carrier flexibility that Microsoft calling plans do not.

For most Melbourne SMEs with modest call volumes, Microsoft calling plans keep things simple. For businesses with high outbound call volumes or existing carrier contracts, Direct Routing through 3CX or via a session border controller for Teams is worth the extra setup.

Call Queue, Call Recording, and PSTN Calling: A Closer Look

Call Queue Handling

A call queue holds inbound callers in line when all agents are busy. 3CX has had mature queue features for years: configurable queue strategies, music on hold, queue position announcements, overflow rules, and real-time wallboards. Managing a queue in 3CX is intuitive and does not require a separate product.

Team Phone does support call queues, but the feature set is more limited at the standard tier. More advanced queue management and reporting requires additional licences or a third-party integration. For businesses where the queue is a critical part of daily operations, this gap matters.

Call Recording

Call recording for compliance or quality purposes is another area where 3CX pulls ahead. Built-in call recording in 3CX is configurable at the extension, queue, or system level. You decide what gets recorded, where it is stored, and who can access it.

Teams call recording for external PSTN calling is not included in Teams Phone Standard. You typically need a Microsoft 365 compliance licence or a third-party recording solution, which adds cost and complexity.

PSTN Calling

PSTN calling (connecting to the regular phone network) is supported by both platforms, but the path differs. Microsoft Teams requires either Microsoft calling plans or Direct Routing. 3CX connects via SIP trunk directly. For Australian businesses, local SIP providers often deliver better pricing and flexibility than bundled Microsoft calling plans.

Teams Admin vs 3CX Management Console: Running the Systems Day to Day

How easy is each system to manage for a non-specialist? This matters for Melbourne businesses without a dedicated IT team.

• Teams admin centre: Microsoft’s Teams admin portal is web-based and reasonably intuitive for basic tasks like adding users and assigning phone numbers. More advanced configuration, like setting up Direct Routing, managing the session border controller, or configuring call queues, can get complex. Team admin tasks often require Azure Portal access alongside the Microsoft 365 admin centre, which means juggling multiple dashboards.
• 3CX management console: The 3CX management console is a single web-based dashboard that manages everything: extensions, SIP trunks, call queues, IVR, call recording rules, phone numbers, and reporting. For most Australian IT administrators, it is easier to get confidence in than the Microsoft ecosystem, particularly if they do not already manage Teams admin.

For businesses working with a managed service provider, a good 3CX partner handles the 3CX management console on your behalf, so day-to-day admin is largely invisible.

Teams Phone or 3CX: A Decision Guide for Melbourne Businesses

Not sure where you land? Work through these questions:

Your Situation	Likely Best Fit
Your team already uses Microsoft 365 and calling needs are basic	Teams Phone
You need advanced call queues, IVR, or call recording	3CX
You have high call volumes and want to control carrier costs	3CX with your own SIP trunk
You want native Microsoft 365 ecosystem, but need better phone features	3CX with Microsoft Teams integration via Direct Routing
You run a contact centre or multi-site operation	3CX PRO or Enterprise
You are a small business wanting simple setup with one vendor	Teams Phone (if already on Microsoft 365)
You need on-premise or hybrid phone system deployment	3CX (self-hosted)
You want the most cost-efficient option at 50+ staff	3CX (simultaneous call licensing)

The Right Phone System for Your Melbourne Business

There is no single right answer here, and that is actually good news. The range of options means you can match the phone system to your real business needs rather than fitting your business around the platform.

If your team already lives in Teams, Microsoft 365 is already embedded in your workflow, and your calling requirements are modest, Team Phone is a reasonable path. If you need a proper business phone system with advanced features, flexible licensing, and control over your calling costs, 3CX is the right choice. And if you want both, 3CX with Microsoft Teams integration is a proven combination that Melbourne businesses are running successfully right now.

Telco ICT Group is a trusted 3CX partner based in Melbourne. We manage 3CX deployments of all sizes, help businesses evaluate their options honestly, and handle everything from 3CX deployment through to ongoing support. Whether you are looking at a 3CX phone system, a managed Teams integration, or just want someone to walk you through the numbers, we are here.

Talk to a Melbourne 3CX specialist today. Contact Telco ICT Group to get a clear, no-obligation comparison for your specific situation.

Frequently Asked Questions

Can I use Microsoft Teams as a phone system without 3CX?
Yes. Team Phone Standard plus a calling plan or Direct Routing gives you a functional business phone system. It works well for organisations whose team already lives in Teams and whose calling requirements are not complex. For businesses that need proper queues, recording, or contact centre features, it will feel limited.

Does 3CX work with Microsoft Teams?
Yes. 3CX integrates with Microsoft Teams via Direct Routing. Staff make and receive calls from within the Teams app while 3CX handles the back-end call routing, queues, and recording. This native Teams integration is a popular choice for businesses that want the Teams interface but need more phone system capability.

Is 3CX cheaper than Teams Phone?
In most scenarios, yes, especially at 20 or more users. 3CX’s simultaneous call licensing means you are not paying for every user, just the concurrent calls your business actually makes. When you factor in total cost of ownership across licensing, carrier costs, and features, 3CX is typically more cost-efficient for Australian businesses that rely heavily on the phone.

What is Teams Phone Standard?
Teams Phone Standard is the add-on licence that enables PSTN calling in Microsoft Teams. It adds inbound and outbound external calling capability to an existing Microsoft 365 subscription. You still need either Microsoft calling plans or Direct Routing to connect to the public phone network. Teams Phone Standard plus a calling plan is the entry-level way to use Microsoft Teams for business phone calls.

What is a session border controller?
A session border controller (SBC) is a device or virtual appliance that sits between your SIP trunk provider and Microsoft Teams (when using Direct Routing). It handles call routing, security, and protocol translation. Microsoft maintains a list of certified SBCs for Teams Direct Routing. If you are using 3CX, the SBC function is typically handled by the 3CX server itself.