In the modern enterprise landscape Microsoft Teams has evolved into the primary communication hub for global organizations. While Teams provides a robust internal platform for voice and video its true power as a business phone system is unlocked when connected to the Public Switched Telephone Network (PSTN).
To bridge the gap between the Microsoft cloud and traditional telephony organizations must leverage SIP Trunking for Microsoft Teams. This guide explores how to implement this connectivity using Direct Routing, the benefits of Domestic Termination and the technical architecture required for a secure scalable deployment.
Understanding the Architecture: SIP Trunking & Direct Routing
At its core SIP (Session Initiation Protocol) is the signaling language of modern VoIP. A SIP Trunk is a virtual version of an analog phone line that allows a SIP provider to connect one or more channels to an organization’s PBX.
What is Direct Routing?
Direct Routing is the Microsoft endorsed mechanism that allows businesses to connect their own telecommunications provider (via a SIP Trunk) to the Microsoft Teams Phone System. Unlike Microsoft Calling Plans where Microsoft acts as the carrier Direct Routing allows you to “Bring Your Own Carrier” (BYOC).
The Role of the Session Border Controller (SBC)
In a Direct Routing setup the Session Border Controller (SBC) acts as the critical gatekeeper. It sits between the telephony provider’s SIP Trunk and the Microsoft Teams cloud. The SBC performs several vital functions:
- Security: Acts as a specialized firewall for voice traffic preventing toll fraud and DDoS attacks.
- Interoperability: Translates signaling and media between different protocols.
- Media Optimization: Ensures call quality by managing jitter latency and packet loss.
The Strategic Value of Domestic Termination
When selecting a SIP provider for Microsoft Teams the quality of Domestic Termination is often the deciding factor for enterprise grade reliability.
What is Domestic Termination?
Domestic Termination refers to the process of routing a call to its final destination within the same country where the call originated. For example if a Teams user in London calls a landline in Manchester a provider with strong UK Domestic Termination will route that call directly through local UK carrier interchanges.
Benefits of High Quality Domestic Termination:
- Superior Call Quality: By keeping the call path local you minimize the “hops” the data packets must take. This significantly reduces Latency and Jitter ensuring crystal clear audio.
- Drastic Cost Reduction: Local termination is almost always cheaper than international transit. Businesses can save up to 40 60% compared to standard global calling plans.
- Accurate Caller ID (CLI): Proper domestic routing ensures that local caller ID is presented correctly increasing call back rates for sales and support teams.
- Regulatory Compliance: Many regions (such as the EU and India) have strict data and telephony residency laws. Domestic termination ensures calls are handled within legal geographic boundaries.
Direct Routing vs. Operator Connect: Making the Choice
Microsoft offers three primary ways to achieve PSTN connectivity:
| Feature | Direct Routing | Operator Connect | Calling Plans |
| Control | Full control over SBC and routing | Managed by carrier | Fully managed by Microsoft |
| Flexibility | Highest; supports legacy PBX | Medium; carrier dependent | Low; fixed features |
| Complexity | High (Requires IT/VoIP expertise) | Low (Admin Center based) | Minimal |
| Cost | Most cost effective at scale | Competitive | Typically the most expensive |
Verdict: Direct Routing remains the gold standard for enterprises that require complex call routing integration with legacy hardware (like elevator phones or pagers) or specialized Domestic Termination across multiple global regions.
Technical Requirements & Prerequisites
To successfully deploy SIP Trunking for Teams the following infrastructure must be in place:
Licensing
Users must have a Microsoft Teams Phone license. This is included in Microsoft 365 E5 or available as an add on for E1/E3 or Business Premium licenses.
Certified SBC
Microsoft only supports Certified Session Border Controllers. Leading vendors include:
- Ribbon Communications (SBC SWe Edge)
- AudioCodes (Mediant series)
- Cisco (CUBE)
Network and Security
- TLS 1.2: Microsoft enforces Transport Layer Security for all SIP signaling.
- Certificates: The SBC must have a certificate from a trusted Public Certificate Authority (CA). Self signed certificates will be rejected by the Microsoft SIP Proxy.
- Public IP & FQDN: The SBC requires a static public IP and a Fully Qualified Domain Name (FQDN) (e.g. sbc1.contoso.com). Note: *.onmicrosoft.com domains are not supported for SBC FQDNs.
Step by Step Configuration Guide
Configuring Direct Routing involves a mix of the Teams Admin Center (TAC) and PowerShell.
Step 1: Pair the SBC with the Tenant
Navigate to Voice > Direct Routing in the Teams Admin Center. Add a new SBC using its FQDN and specify the signaling port (usually 5061 for TLS).
Step 2: PowerShell Provisioning
Use the Teams PowerShell module to define the gateway.
PowerShell
New CsOnlinePSTNGateway FQDN sbc1.contoso.com SipSignalingPort 5061 MaxConcurrentCalls 100 Enabled $true
Step 3: Configure Voice Routing
You must create PSTN Usages Voice Routes and Voice Routing Policies.
- PSTN Usage: A label (e.g. “LocalCalls”) that links routes to policies.
- Voice Route: Uses Regex to determine which numbers go to which SBC.
- Example Regex for US numbers: ^\+1(\d{10})$
- Voice Routing Policy: Assigned to users to grant them access to specific PSTN usages.
Optimization and Troubleshooting
Even with a perfect setup voice traffic is sensitive to network conditions.
Monitoring Call Quality (MOS Scores)
Monitor the Mean Opinion Score (MOS) via the Microsoft Call Quality Dashboard (CQD). A score of 4.0 or higher is considered “Excellent.” If scores drop check for:
- Bandwidth Throttling: Ensure voice traffic has priority via QoS (Quality of Service) tagging (DSCP 46).
- Firewall Blocks: Ensure ports 5061 (Signaling) and 10000–20000 (Media/RTP) are open.
Common SIP Errors
- 403 Forbidden: Usually indicates an FQDN mismatch or an unverified domain in the Microsoft tenant.
- One Way Audio: Typically a NAT (Network Address Translation) issue where the media ports are not correctly mapped on the firewall.
Conclusion
SIP Trunking for Microsoft Teams via Direct Routing is the most robust solution for modern enterprise communication. By selecting a provider that excels in Domestic Termination businesses can ensure crystal clear call quality while significantly reducing operational costs. As we move deeper into 2026 the integration of AI driven analytics within SBCs will further refine how we manage global voice traffic making Direct Routing an indispensable asset for the digital workplace



















