Once upon a time, employees had to be physically present in the office to take business calls using the office telephone. However, with the advent of remote and hybrid work, virtual workspace providers like Microsoft Teams have made it easier to seamlessly integrate a company's communication infrastructure into employees’ virtual work environment. This allows them to access business calls from anywhere, as long as they're signed into Teams.

Microsoft Teams enables this virtual communication through three methods: Direct Routing, Operator Connect, and Calling Plans. In this guide, we'll focus on Direct Routing and Operator Connect, comparing them closely.

What Is Direct Routing?

Direct Routing is a feature that allows organisations to connect their telephony infrastructure, such as PBX systems and SIP trunks, to Microsoft Teams, enabling users to receive external calls within the Teams app.

Here's how it works:

• A certified Session Border Controller (SBC) is used to connect Teams to a Public Switched Telephone Network (PSTN).
• The organisation connects its PBX system or SIP trunk (provided by a telecom carrier) to the SBC.
• The user needs a Microsoft Phone System license to use Direct Routing.
• When everything is set, calls are routed through the Microsoft Phone System, then through the SBC, and finally to the external phone network, and vice versa

Outgoing Calls: Teams → SBC → PBX/PSTN

Incoming Calls: (PSTN/PBX → SBC → Teams

Note: The PBX is for internal extensions, while the PSTN (via SIP trunk) is for external calls.

What Is Operator Connect?

Operator Connect is an alternative way to access the PSTN (Public Switched Telephone Network) through Microsoft Teams. In this method, a certified third-party telecom provider uses its infrastructure to enable PSTN calling directly within Teams.

Here's how it works:

• The company selects a Microsoft-certified telecom provider (operator) from the Teams Admin Center.
• The operator provides and manages phone numbers, which are assigned to Teams users within the admin portal.
• Then, users can place and receive external phone calls within Microsoft Teams.

Requirements for Direct Routing

To use Direct Routing on Microsoft Teams, the following provisions must be in place:

• A supported Session Border Controller (SBC)
• At least one telephony trunk or entity (PSTN trunks, PBXs, or Analogue Telephony Adapters)
• Microsoft 365 organisation
• User registrar
• One or more domains
• A Fully Qualified Domain Names (FQDN) for the SBC
• A public IP address
• A public DNS entry
• A public trusted certificate
• Connection points for Direct Routing
• Media Transport Profile
• Firewall IP addresses and ports

Requirements for Operator Connect

To be eligible for phone number assignment on Operator Connect, users must meet the following criteria:

• Team Phones Licensed: Organisations must assign their Teams users a Teams Phone Standard license.
• TeamsOnly mode: While users must be in TeamsOnly mode, the entire organisation isn't required to be.
• Certified Operator: The organisation must select a Microsoft-certified operator for its specific country or region.

Benefits of Direct Routing

Direct Routing offers various perks to both business owners (or employers) and employees (users). 

Some advantages of using Direct Routing include:

Flexibility

Direct Routing allows for advanced call routing, integration with existing PBX systems, and custom call flows.

Cost-effectiveness

Direct Routing eliminates the need to maintain separate phones, reducing costs for the organisation. It also enables organisations and users to avoid long-distance charges.

Hybrid Work Support

Remote and hybrid workers can use Direct Routing to place and receive business calls from anywhere, even in regions where Microsoft’s Calling Plans are unavailable.

Scalability

Direct Routing allows organisations to easily add or remove users as the business expands.

Centralised Communication Control

With Direct Routing, a company's admin team can efficiently manage the phone system and user settings within the Microsoft Teams admin center. Additionally, all communication tools—including chat, meetings, and calls—can be accessed within a single interface.

Other Perks

Direct Routing enables organisations and users to use advanced features, such as call forwarding, call recording, and auto attendants through their chosen provider. It can also be integrated with Audio Conferencing, Microsoft Calling Plans, and Operator Connect.

Benefits of Operator Connect

Operator Connect offers many of the same benefits as Direct Routing, including cost-effectiveness, centralised management, flexibility, and scalability, along with some unique benefits.

Some key benefits of using Operator Connect include:

Faster, Simplified Setup

Operator Connect makes it relatively easy and faster to connect the PSTN to Microsoft Teams. All the organisation has to do is connect with an operator, who then assigns phone numbers to the users. In other words, only minimal technical expertise is required to set up phone services.

Personalised Support and Enhanced Reliability

One of the roles of operators is to provide excellent, tailored technical support and shared service level agreements, ensuring smooth calling experience. Additionally, a feature known as direct peering, powered by Azure, optimises Operator Connect for a one-to-one network connection, enhancing reliability.

Operator-managed System

In Operator Connect, the operator provides and manages the interconnecting communication infrastructure, including the SBC and PSTN calling services, saving organisations from the costs of management and hardware purchases.

Downsides of Direct Routing

Despite the undeniable benefits of Direct Routing, it also comes with some downsides.

Here are a few drawbacks of Direct Routing worth considering:

Complex Setup and Management

Direct Routing requires SBC deployment and configuration, which must be handled by the organisation—unlike in Operator Connect. Meanwhile, IT teams are responsible for maintenance, updates, and troubleshooting on their own. Therefore, IT staff must have a considerable level of technical expertise.

Higher Initial Costs

Organisations are likely to incur relatively higher expenses with Direct Routing, especially in the early stages, as they have to purchase and manage SBCs, which can be costly. Additionally, the ongoing cost of maintaining infrastructure is another important consideration.

Longer Deployment Time

Setting up Direct Routing can take weeks or even months, depending on the complexity of the infrastructure. Additionally, organisations must negotiate contracts with telecom providers and comply with Microsoft's requirements, which can be time-consuming. Admins are also responsible for number provisioning and porting.

Downsides of Operator Connect

Operator Connect also has its relative shortcomings.

Here are some cons of Operator Connect:

Limited Provider Options

Organisations must choose from a list of Microsoft-certified telecom operators. Therefore, they may have to switch operators if a preferred provider isn't certified.

Less Control and Customisation

Unlike Direct Routing, organisations can't readily customise call routing, and direct integration with on-premises PBX systems is typically not supported. Similarly, IT teams have limited control over network configurations and call handling.

Regional Availability Restrictions

The Operator Connect option may not be available in some countries or regions. So, organisations in unsupported regions may be forced to use Direct Routing or Calling Plans.

Potentially Higher Long-term Costs

While Operator Connect eliminates SBC costs, operator service fees may be higher over time. Some operators even charge premium rates for services like call recording and analytics.

Which is Cheaper, Direct Routing or Operator Connect?

It's difficult to give a definitive answer on which option—Direct Routing or Operator Connect—is cheaper, as costs vary based on SBC tools, operators, and Microsoft Teams plan. While Direct Routing has higher initial costs, Operator Connect may become more expensive overtime. However, based on our research, Operator Connect is slightly cheaper than Direct Routing.

Summary Table

Here's a comprehensive comparison table for Direct Routing and Operator Connect for more informed decision-making:

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Bottom Line

So, which is better, Direct Routing and Operator Connect? Short answer: It depends on the organisation’s requirements. Choose Direct Routing if you need full control, PBX integration, or have an in-house IT team capable of managing SBCs. On the other hand, choose Operator Connect if you want a simplified setup, minimal IT effort, and faster deployment with a Microsoft-certified operator. You can also combine Direct Routing with Operator Connect to enjoy the benefits of both.

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