Communication has always been at the heart of every successful business, but the way organisations connect with customers, colleagues and suppliers has changed dramatically. Hybrid working is now commonplace, customers expect faster responses, and employees need the flexibility to stay connected whether they’re in the office, working from home or meeting clients on the road.

At the same time, businesses across the UK are preparing for the Public Switched Telephone Network (PSTN) switch off, with analogue phone lines due to be retired by January 2027. Rather than simply replacing an ageing telephone system, many organisations are taking the opportunity to improve collaboration, reduce costs, and future proof their communications with a modern cloud-based phone system such as Microsoft Teams Phone.

At PurpleJelly, we help businesses across Surrey and Hampshire get the most from their technology. From implementing Microsoft 365 and strengthening cyber security to delivering fully managed IT support, we help organisations adopt solutions that improve productivity without adding unnecessary complexity.

If you’re considering Teams Phone, this guide explains how it works, its benefits, and whether it’s the right investment for your small business in 2026.

Why are Businesses Reviewing Their Phone Systems?

The UK’s communication infrastructure is changing rapidly. Openreach’s nationwide PSTN and ISDN switch off means analogue phone lines will no longer be available after January 2027. Businesses still relying on legacy telephone systems must migrate to digital alternatives before then. While this may initially seem like another technology project to manage, it also presents an opportunity to modernise communications and adopt solutions that better support today’s ways of working.

Rather than investing in another on premises telephone system, many organisations are choosing a fully integrated cloud-based phone system that provides greater flexibility, improved resilience, and easier scalability. This approach brings voice, messaging, meetings, and collaboration together in a single platform, removing much of the hardware associated with traditional telephony while giving employees the freedom to work from virtually anywhere. For small businesses in 2026, this shift is becoming less of an option and more of a strategic decision that supports long term growth and business continuity.

What is Microsoft Teams Phone?

Since its launch in 2017, Microsoft Teams has become one of the world’s most widely adopted collaboration platforms, with Microsoft reporting more than 320 million monthly active users globally in 2024.

Many organisations already use Teams for instant messaging, video meetings, and file sharing. What they often don’t realise, however, is that you can to replace your traditional business telephone system and consolidate everything into Microsoft Teams.

Microsoft Teams Phone adds enterprise-grade voice calling directly into Teams, allowing employees to make and receive calls to landlines and mobile phones using their existing business telephone numbers. Instead of relying on dedicated telephone infrastructure, calls are securely routed over the internet, and can be answered from a desktop computer, laptop, mobile device, or certified Teams desk phone.

In practical terms, Microsoft Teams Phone replaces the need for a traditional office PBX, while adding a host of intelligent features designed for modern businesses. These include:

• Voicemail transcription
• Call forwarding
• Auto attendants
• Call queues
• Presence information (to avoid calling someone whilst they’re in another meeting)
• Call recording
• Video meetings
• Screen sharing during calls
• Integration with Outlook calendars and Microsoft 365 applications

How Does Microsoft Teams Phone Work?

Unlike traditional telephone systems that transmit calls over physical phone lines, Microsoft Teams Phone operates as a cloud-based phone system using Voice over Internet Protocol, more commonly known as VoIP. This carries voice calls securely over your internet connection, removing the need for traditional telephone infrastructure. It also provides far greater flexibility, as employees can make and receive calls from almost anywhere with reliable internet access.

Imagine one of your employees starts the day working from home, travels to a client meeting in Guildford during the afternoon, and finishes the day back at the office in Farnborough. With a traditional phone system, they may miss important calls unless they manually divert them or provide customers with multiple contact numbers. With Microsoft Teams Phone, their business number follows them automatically. Whether they’re using a laptop, smartphone, or Teams-certified handset, the experience remains consistent throughout the day.

Why Microsoft Teams Phone Makes Sense for Small Businesses in 2026

Facilitates Modern Working

Hybrid working has become a permanent feature of many organisations, with research from the Office for National Statistics showing that hybrid working remains common across professional industries. Employees also increasingly value the flexibility, autonomy, and work-life-balance that remote working offers.

Communication technology needs to reflect this reality. Whether someone is working from home in Guildford, visiting clients in Farnham, or spending the day in the office, Microsoft Teams Phone keeps them connected using the same business identity. Plus, if severe weather, transport disruption, or unexpected office closures prevent staff from reaching the workplace, business communication continues uninterrupted.

Brings Communication Together

A major advantage of Microsoft Teams Phone is that it brings multiple communication tools into one familiar platform. Employees no longer need to switch between different applications to answer calls, join meetings, or collaborate with colleagues. Everything happens within Microsoft Teams, helping reduce interruptions while improving efficiency throughout the working day.

For businesses already using Microsoft 365, this integration creates a more joined up digital workplace. Staff can access Outlook calendars, SharePoint documents, and Teams conversations alongside business calls, creating smoother workflows and reducing the amount of time spent moving between different systems.

Can Grow Alongside Your Business

Scalability is another reason why many small businesses in 2026 are moving towards a cloud-based phone system. Traditional telephone systems often require additional hardware, engineering visits, and expensive upgrades whenever a business grows. By comparison, Microsoft Teams Phone allows organisations to add new users quickly through Microsoft 365, making expansion considerably simpler.

Adding a new employee often takes only a few minutes rather than requiring engineers to install additional physical lines or configure new telephone hardware.

Whether you’re recruiting additional employees, opening another office, or supporting a growing remote workforce, the platform can scale without requiring major infrastructure changes. This flexibility helps businesses future proof their communications while keeping costs predictable.

Familiar Technology Encourages Adoption

Introducing new technology can sometimes create uncertainty among employees, particularly if they need to learn entirely new systems. One of the advantages of Microsoft Teams Phone is that many employees are already familiar with Microsoft Teams through meetings and collaboration.

Rather than introducing another application, businesses simply extend the functionality of software staff already use every day. This reduces training requirements, encourages faster adoption and helps employees feel more confident during the transition.

Predictable Monthly Costs Without Compromising on Functionality

One of the biggest misconceptions surrounding business telephony is that advanced communication systems are only affordable for large organisations. Because Microsoft Teams Phone is licensed through Microsoft 365, businesses benefit from predictable monthly pricing rather than large capital expenditure. This makes budgeting considerably easier while eliminating much of the maintenance associated with traditional phone systems.

Teams Phone operates on a predictable per-user subscription model. For most small businesses we work with, this results in a 30-50% reduction in telephony costs. Consolidating communication services into a single cloud-based phone system can also simplify supplier management and reduce administrative overheads. Instead of managing separate contracts for telephones and collaboration software, organisations can bring everything together within the Microsoft ecosystem.

But cost savings do not mean compromising on functionality. Features such as auto attendants, call queues, voicemail transcription, and intelligent call routing have traditionally been associated with much larger organisations. Today, these capabilities are available to businesses of all sizes through Microsoft Teams Phone, allowing even smaller organisations to deliver a polished and professional customer experience.

Supports Better Customer Service

A well-configured Microsoft Teams Phone solution can significantly improve customer experience through intelligent call routing and automation. Auto attendants ensure callers are directed to the appropriate department quickly, while call queues help distribute incoming enquiries evenly across available staff. Presence information also allows employees to see whether colleagues are available before transferring calls, reducing unnecessary delays and improving first-contact resolution. Voicemail transcription means important messages can be reviewed quickly without listening through lengthy recordings, helping staff respond faster to customer enquiries.

What Should You Consider Before Making the Switch?

While Microsoft Teams Phone offers considerable benefits, every business should carefully assess its requirements before migrating to a new telephone system. A successful implementation isn’t simply about choosing the right technology. It also depends on planning, configuration and ensuring your wider IT infrastructure is ready to support it.

A Reliable Internet Connection is Essential

Because Teams Phone is a cloud-based phone system, call quality depends on a stable internet connection. Fortunately, this is far less of a concern than it was a few years ago, with full fibre broadband becoming increasingly available across Surrey, Hampshire, and the rest of the UK.

Before migrating, it’s worth reviewing your current broadband performance, network infrastructure, and Wi-Fi coverage. Teams Phone doesn’t require enormous bandwidth‚ about 0.1 Mbps per simultaneous call‚ but it does need reliable and stable connectivity. Even businesses with fast internet connections can experience poor call quality if their internal network isn’t configured correctly. A professional IT assessment can determine if your current setup is sufficient and identify any improvements needed before implementation, helping ensure users enjoy a reliable calling experience from day one.

Every Business Has Different Requirements

No two organisations communicate in exactly the same way. Some businesses require sophisticated call routing, while others depend on reception teams, hunt groups, or integration with specialist applications. Understanding these requirements before implementation helps ensure your new cloud-based phone system is configured to support the way your business actually operates.

Working with an experienced IT provider also helps avoid unnecessary disruption during migration. Features such as call queues, auto attendants, emergency calling, and user permissions all require careful configuration, particularly if your organisation has multiple departments or locations.

Is Microsoft Teams Phone the Right Choice for Your Business?

The suitability of Teams Phone really depends on your specific business needs, but there are a few indicators that might suggest it’s a good fit:

• You’re already using Microsoft 365 and Teams for collaboration
• Your team works across multiple locations or remotely
• You’re looking to reduce or stabilise your communication costs
• You want advanced features without complex hardware
• You’re planning to grow and need a scalable solution

Conversely, Teams Phone might not be the best choice if:

• Your internet connection is unreliable and can’t be improved
• You have very specific telephony requirements that Teams doesn’t support
• Your team is resistant to technological change (though this can usually be overcome with proper training and support)

Prepare Your Business for the Future of Communication with PurpleJelly

Business communication has evolved considerably over the past decade, and that evolution is set to continue as organisations embrace cloud technology, hybrid working, and artificial intelligence. With the PSTN switch off approaching, there has never been a better time to review whether your existing telephone system is still meeting the needs of your business.

For many organisations, Teams Phone offers far more than a replacement for traditional telephony. It provides a flexible, secure, and scalable cloud-based phone system that integrates seamlessly with Microsoft 365, helping employees communicate more effectively while supporting future business growth. From reducing infrastructure costs and improving collaboration to enabling hybrid working and enhancing customer service, it delivers tangible benefits that extend well beyond simply making and receiving phone calls.

At PurpleJelly, we’ve helped businesses across Surrey and Hampshire modernise their IT infrastructure with practical, cost-effective technology that supports the way they work today while preparing them for tomorrow. If you’re considering Microsoft Teams Phone and would like expert, jargon-free advice, we’d be delighted to help.

Contact our team today to arrange a no obligation consultation and discover whether Microsoft Teams Phone is the right solution for your business in 2026 and beyond.