Microsoft Teams Direct Routing vs Operator Connect — Australia 2026

Microsoft Teams is now the phone system for millions of Australians — but to make external calls you need PSTN connectivity. There are two ways to add it: Direct Routing and Operator Connect. Here is how they differ and which is better for your Perth business.

What Is Direct Routing?

Direct Routing connects your Microsoft Teams tenant to the public telephone network via a Session Border Controller (SBC) hosted by a certified telephony provider. Your provider (like PC Madness VoIP) manages the SBC and SIP trunking infrastructure. You pay the provider for call plans and DIDs; Microsoft does not need to be involved in billing at all.

Direct Routing is the most flexible option. You can use any certified telephony provider anywhere in the world, choose your own call plan, keep your existing numbers, and integrate with complex enterprise call routing.

What Is Operator Connect?

Operator Connect is a Microsoft-managed marketplace of certified carriers. Instead of configuring an SBC independently, you select a carrier inside the Microsoft Teams admin centre and they provision connectivity directly. The setup is simpler and fully managed by Microsoft and the carrier together.

In Australia, Operator Connect carriers include Telstra, Optus, TPG, and a handful of others. Smaller regional providers are generally not on the Operator Connect list.

Direct Routing vs Operator Connect: Key Differences

Factor Direct Routing Operator Connect
Provider choiceAny certified providerMicrosoft-approved carriers only
Setup complexityModerate (SBC config)Low (admin centre UI)
Number portingFull flexibilityCarrier-dependent
PricingCompetitive, often cheaperMajor carrier pricing
Regional Perth supportYes (local providers)Limited local support
Custom call routingFull controlLimited

Cost Comparison for Australian Businesses

Operator Connect carriers in Australia (Telstra, Optus) typically charge $25–$40 per user per month for Teams PSTN connectivity. Direct Routing through a local provider like PC Madness VoIP starts from $4.95 per Teams account per month — a fraction of major carrier pricing.

For a 20-person business: Operator Connect ≈ $500–$800/month vs Direct Routing ≈ $99–$160/month. The saving pays for itself almost immediately.

Which Should You Choose?

Choose Direct Routing if:

  • You want the lowest possible per-user cost
  • You need to keep existing phone numbers
  • You want local Perth support, not a national call centre
  • You need flexible call routing (IVR, ring groups, overflow)
  • You are an SMB (most Australian SMBs are better served by Direct Routing)

Choose Operator Connect if:

  • You want the simplest possible setup with zero SBC configuration
  • You are a large enterprise with an existing Telstra/Optus relationship
  • Cost is not a primary concern
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Learn About Teams Direct Routing

Frequently Asked Questions

What is the difference between Teams Direct Routing and Operator Connect?
Direct Routing uses a third-party certified provider with an SBC to connect Teams to the phone network — more flexible and usually cheaper. Operator Connect is a Microsoft-managed marketplace of approved carriers with simpler setup but less flexibility and higher cost.
How much does Teams Direct Routing cost in Australia?
Through local providers like PC Madness VoIP, Teams Direct Routing starts from $4.95 per user per month — significantly cheaper than Operator Connect carriers which typically charge $25–$40 per user.
Can I keep my existing phone number with Teams Direct Routing?
Yes. Direct Routing supports full number porting. Your existing geographic, 1300, or 1800 numbers can be ported to your Direct Routing provider and assigned to Teams users.
Is Teams Direct Routing available in Perth, Western Australia?
Yes. PC Madness VoIP provides Teams Direct Routing to businesses across Perth and Western Australia, with local support available Monday–Friday 8am–4pm AWST.