Callata vs Microsoft Teams Phone for Small Teams

Short answer: Microsoft Teams Phone adds business calling to Microsoft Teams, starting at $10 per user per month for the phone license plus a separate Teams license, and $17 per user per month in the US when bundled with a Calling Plan that includes 3,000 outbound domestic minutes. Prices are for annual subscriptions. Callata is a standalone phone system at $99 per month with five users included ($20 per additional user), billed monthly. Teams Phone is the logical choice for organizations that already run on Microsoft 365 and want calls inside Teams, and its phone bundle costs less per user; Callata is simpler for small teams that do not want to stack licenses or sign a 12-month term.

Teams Phone figures are from Microsoft's Teams Phone page as checked on October 1, 2026. Callata figures are from callatta.com.

How Teams Phone is licensed

Microsoft separates the phone system from the phone number and minutes:

Option	Price (paid yearly)	What you get
Teams Phone Standard	$10/user/mo	Cloud phone system features in Teams; bring your own numbers and calling through a provider
Teams Phone with pay-as-you-go calling (US)	$13/user/mo	Phone number with metered outbound calling minutes from Microsoft
Teams Phone with Calling Plan (US)	$17/user/mo	Phone number with 3,000 outbound domestic minutes (US, UK, Canada)
Teams Phone with domestic and international calling	$34/user/mo	Phone number with 3,000 domestic or 600 international outbound minutes (US, UK, Canada)

All of these are annual subscriptions that auto-renew, and Microsoft states that a separate Microsoft Teams license is required. The one-month free trial of Teams Phone Standard converts to a 12-month paid subscription and requires a credit card.

Side by side

	Teams Phone with Calling Plan	Callata Office
Price	$17/user/mo + Teams license	$99/mo, 5 users included (+$20/user)
Billing	Annual subscription	Monthly
Outbound domestic calling	3,000 minutes per user	1,500 US and Canada minutes per user, pooled, then $0.01/min; inbound unlimited
Business texting	Not listed on the Teams Phone page	Shared inbox after $49 10DLC registration
Call recording	Microsoft lists reviewing recordings and transcripts	Included, with AI summaries
AI	Copilot and intelligent recap features marketed for Teams Phone	AI summaries, voicemail urgency triage, AI agents at $0.25/min
Video meetings and chat	Teams	Not offered
Apps and devices	Teams apps, certified desk phones	Browser plus cell ringing

Cost by team size

These figures show Teams Phone with Calling Plan only. Add whatever Teams license your users need.

Team size	Teams Phone with Calling Plan	Callata Office
2 users	$34	$99
3 users	$51	$99
4 users	$68	$99
5 users	$85	$99
10 users	$170	$199
25 users	$425	$499

Before counting the Teams license, Teams Phone with Calling Plan costs less than Callata at every team size shown, because $17 per user stays below Callata's $20 per additional user. If your users already have Microsoft 365 for email and documents, the Teams license is a sunk cost and Teams Phone is the cheaper phone line. If not, you are buying two products to get one phone: at five users, a Teams license costing more than $2.80 per user per month makes Callata cheaper, and at ten users the threshold is $2.90 per user.

Texting is the gap to check

Microsoft's Teams Phone page focuses on calling, voicemail and AI recaps, and does not list business SMS as part of the plans. If your customers text you, confirm with Microsoft or your calling provider how texting would work before you buy.

Callata includes team texting: a shared inbox on your business number with templates, delivery receipts and AI-suggested replies. It requires a one-time $49 carrier registration for 10DLC compliance, usually approved in 3 to 10 business days, and honors STOP and other opt-out keywords automatically.

AI features

Microsoft markets AI-generated notes, real-time summarization and call insights through Copilot and intelligent recap in Teams Phone, plus voice isolation to reduce background noise. Some of these depend on additional Microsoft licensing, so confirm what your plan includes.

Callata includes AI summaries on every recorded call (with sentiment and action items saved to the contact), voicemail transcription with urgency triage and scheduled callbacks, and an AI workforce of receptionist, sales, support and scheduler agents. Agents answer after hours or when nobody picks up, text, email, take messages and transfer to a person, using prepaid minutes at $0.25 per minute. Outbound AI calls require prior consent and are limited to 8am to 9pm.

Setup effort

Teams Phone is configured in the Teams admin center: assign Teams Phone licenses, acquire or port numbers, assign numbers to users, build auto attendants and call queues, set emergency addresses and, if you bring your own carrier, configure operator connect or direct routing. For an organization with IT staff that already manage Microsoft 365, this is familiar work. For a ten-person business without IT, it can take outside help.

Callata is set up from a single admin area by the owner or office manager. You pick up to three local numbers, register the 911 address, set business hours and an after-hours rule, create ring groups or extensions, invite teammates by email and start texting registration. Calls ring in every open Callata browser tab, and anyone can choose to ring their cell as well.

Outbound minutes compared

The Calling Plan bundle gives each user 3,000 outbound domestic minutes per month, which is generous for most office workers. Teams that make heavy outbound calls, such as dispatchers or collections staff, should check whether minutes are pooled across the organization and what happens when the bundle runs out. Callata includes unlimited inbound calling and 1,500 outbound US and Canada minutes per user per month, pooled across the team (7,500 minutes for five users), then $0.01 per minute. That is half Microsoft's per-user allowance, but because it is pooled, light callers offset heavy ones. Callata's fair-use policy excludes auto-dialing, call centers and robocalling, so it is meant for normal business conversations between people.

Where Teams Phone is stronger

• Inside Microsoft 365. Calls, chat, meetings and files in one app, managed by the same admin.
• Enterprise controls and compliance from Microsoft's platform.
• Desk phones and meeting rooms certified for Teams.
• International options, including international minutes and numbers in many countries.
• Lower per-user price for the phone bundle at every team size, especially for organizations that already have Teams licenses.
• Larger outbound allowance: 3,000 domestic minutes per user against Callata's 1,500 pooled.

Where Callata is stronger

• One monthly plan with five users included and no license stacking.
• No annual term. Cancel any month; service runs to the end of the paid period.
• Unlimited inbound calling and a pooled outbound allowance shared across the team.
• Business texting built in.
• AI agents and voicemail triage included in the product.
• Simple setup without Teams admin, calling plans or direct routing.

Who should choose which

Choose Teams Phone if your company runs on Microsoft 365, people already collaborate in Teams, and you have someone comfortable in the Teams admin center.

Choose Callata if you want a business phone system that works on its own, texts customers, records and summarizes calls, and includes five users in one $99 plan, at $20 per additional user.

Switching checklist

• Check when your Teams Phone annual subscription renews.
• Port numbers to Callata for free through [email protected].
• Set up business hours, ring groups and extensions in Callata.
• Register for texting on day one.
• Keep Teams for chat and meetings if your team uses them.

Related: Microsoft Teams Phone pricing explained, Microsoft Teams Phone alternatives and Callata vs Zoom Phone.

Try Callata

If you want business calling and texting without stacking Microsoft licenses or signing a 12-month term, Callata covers up to five users for $99 per month, plus $20 per additional user. Sign up for Callata.