Welcome to our SIPcity vs Telstra comparison guide. Telstra is quietly exiting the small and medium business phone market. Between now and 30 August 2027, three of its core SMB voice products are being shut down: Business SIP (closed to new customers 30 May 2025), Telstra DOT (shutting down 30 August 2027), and Telstra Calling for Office 365 / TCO365 (withdrawing 30 November 2026). If you are an Australian business still on any of these products, or considering Telstra for a new site, you are looking at a forced migration in the next 6 to 24 months.

This page is a head-to-head SIPcity vs Telstra comparison for Australian business voice. We wrote it for the buyer who is asking the practical question: do I stay, do I switch, and if I switch, to whom? The page intentionally avoids sales pitch language. Instead, it covers the cases where Telstra remains the right answer, alongside the cases where SIPcity is. To understand Telstra’s stance, you can also read their public business unified communications overview.

For a deeper dive into the Telstra SMB withdrawal itself, see our Telstra SMB Phone Exit explainer. For product-by-product alternatives, see our guides on Telstra TIPT alternatives, Telstra Business Voice alternatives, and Telstra DOT alternatives.

SIPcity vs Telstra at a glance

How Telstra business voice works in 2026

Telstra sells business voice through three current product families:

The three current Telstra offerings are:

Telstra TIPT (Telstra IP Telephony) is a Cisco Webex-powered UC suite aimed at multi-site enterprises. It sits inside Telstra’s premium tier, and carriers sell it with a 24–36 month contract.

Telstra Business SIP is a SIP trunking product that connects your existing on-premises PBX to Telstra’s network. The carrier closed this option to new customers on 30 May 2025.

Telstra DOT (Digital Office Technology) is a bundled phone and broadband product for small business. Stop-sell started 30 September 2025, with full shutdown scheduled for 30 August 2027.

Outside of these, Telstra steers SMB customers toward consumer-grade “Telstra Mobile” or partner-managed cloud services. Consequently, no clear cloud PBX product exists from Telstra in the SMB segment as of mid-2026.

For an Australian business, Telstra’s strengths remain real: the network is genuinely the best in the country, billing is consolidated, and enterprise support is strong if you are a 500+ seat customer. The weaknesses, also real, are contractual friction (lock-in, hardware leasing, change-of-service fees), premium pricing on basic features, and a customer service experience that drops sharply once you leave the enterprise tier.

How SIPcity business voice works

SIPcity is a 100% Australian-owned cloud PBX and SIP trunking provider. We have been operating the same network in Australia for over 15 years. The product is built for businesses between 1 and 500 users, with the same platform covering both the smallest sole-trader and the largest multi-site customer.

The model is deliberately different from Telstra’s:

• No contracts. Every plan is month-to-month. You can leave any time and take your numbers with you.
• No setup fees. You sign up online, port your number for free, and are typically live the same day.
• No hardware lock-in. Bring your existing SIP handsets, or buy from us outright (no lease, no return obligation).
• One price per user. Calls to Australian mobiles and landlines are included. No itemised add-on stack.
• Australian support, on-shore data. Real humans, based in Australia, available during business hours without an IVR maze.

For a product overview, see SIPcity’s full feature list or the business phone system page.

7 key differences that matter in the SIPcity vs Telstra decision

1. Pricing model and the real cost of “free” setup

Telstra’s headline pricing for SMB voice typically excludes line rental, hardware lease, and per-feature add-ons. A $25/user/month plan commonly ends up costing $40–$55/user/month once fully loaded. SIPcity’s published per-user price includes Australian mobile and landline calls, so the number on the page is the number on the invoice.

2. Contract length and exit cost

Telstra SMB voice is sold on 12, 24, or 36 month terms. Early termination attracts fees of 50–100% of the remaining contract value. SIPcity is month-to-month, so you can stop paying any time and keep your numbers.

3. Time to deploy

Telstra orders for new sites, additional lines, or number ports typically take 2–6 weeks. SIPcity is fully self-service, so most customers are live in under 30 minutes, and number porting normally completes in 5–10 business days.

4. AI Voice Agent (auto attendant, but actually intelligent)

SIPcity includes an AI Voice Agent as a first-class feature. It answers every call, books appointments, qualifies leads, and integrates with your calendar and CRM. Telstra offers no equivalent in the SMB tier, and comparable AI answering services are third-party, costing $150–$400/month on top of the phone system.

5. Microsoft Teams integration

Telstra’s Teams offering (TCO365) is retiring 30 November 2026. SIPcity provides native Microsoft Teams Direct Routing, so your existing Teams clients become business handsets without depending on a soon-to-be-defunct Telstra product.

6. Number porting

Both providers offer free number porting. Telstra’s lead time averages 4–8 weeks, with frequent delays and a requirement to keep your old service active during the port. SIPcity’s average lead time is 5–10 business days, and ports are managed in-house by our Australian team. See the number porting guide for process details.

7. Support experience

Telstra SMB support is largely tier-1 and offshore. Long wait times, scripted responses, and frequent escalations are the norm. SIPcity’s support team is in Australia, has direct access to the network and billing systems, and resolves most issues on the first contact.

Who should stay with Telstra

Telstra remains a sensible choice in three specific cases:

• You are a 500+ seat enterprise with multi-site redundancy, dedicated account management, and the budget to absorb premium pricing.
• You have a regulated compliance requirement that mandates Telstra’s network specifically. This is rare, but it does exist in some government and defence contracts.
• You are deeply integrated with Cisco Webex as a collaboration platform, and your workforce is trained on it. In that case, TIPT can be a reasonable choice, but the price reflects it.

Who should switch to SIPcity

Switching makes sense if any of the following apply:

• You are on a Telstra SMB product that is being shut down (Business SIP, DOT, or TCO365) and you have a deadline.
• Your current bill sits above $25/user/month, and you want the same feature set for less.
• You want AI-powered call handling without paying $200–$400/month for a third-party add-on.
• You are locked into a 24 or 36 month Telstra contract and want to know your exit options. See the account and service cancellation policy for the standard process.
• You are scaling beyond 50 users and want a single price per user, not a feature stack.
• You are opening a new site and want it live today, not in 4 weeks.

How the migration from Telstra to SIPcity works

The migration is well-trodden. Most Australian businesses moving from Telstra to SIPcity follow this path:

1. Sign up at sipcity.com.au/signup. It takes 5 minutes and no credit card is required.
2. Port your numbers for free. Submit a porting request, we lodge it with the losing carrier, and the numbers move in 5–10 business days. Your old Telstra service stays active until the cutover.
3. Connect your devices: either plug your existing SIP handsets into the new configuration (we provide step-by-step guides), or use the SIPcity desktop and mobile apps.
4. Configure call flows through the self-service portal: auto attendant, call queues, time-of-day routing, voicemail-to-email, and so on.
5. Cancel Telstra once you are confirmed live on SIPcity. Keep your final Telstra invoice for your records.

For businesses coming from a different incumbent (not Telstra), the Skype to SIPcity migration guide covers the same steps for Microsoft Skype for Business users.

SIPcity vs Telstra: city-by-city

SIPcity is a national provider with local presence in every Australian capital. The product is identical across the country, with the same pricing, same support, and same network, but local businesses often ask whether we cover their area. We do. See our dedicated pages for VoIP Sydney, VoIP Melbourne, VoIP Brisbane, VoIP Adelaide, and VoIP Perth.

Frequently asked questions

Is SIPcity cheaper than Telstra for business phone?

In most cases, yes. A typical SIPcity business plan runs from $5.00 to $25 per user per month with Australian mobile and landline calls included. A comparable Telstra SMB plan commonly lands between $25 and $55 per user per month once line rental, hardware, and per-feature add-ons are included.

Can I keep my existing Telstra phone numbers?

Yes. Number porting from Telstra to SIPcity is free and normally takes 5–10 business days. Your old Telstra service remains active until the port completes, so there is no downtime. See the number porting page for the full process.

What happens when Telstra Business SIP closes?

Telstra Business SIP closed to new customers on 30 May 2025. Existing customers remain on the service “until further notice,” which means Telstra is no longer investing in the platform. SIPcity’s SIP Trunking product is a direct, drop-in replacement for most PBX systems. See our alternatives to TPG and Telstra guide for the full comparison.

What about Telstra DOT: is there a replacement?

Telstra DOT is in stop-sell from 30 September 2025 and shuts down completely on 30 August 2027. SIPcity’s business phone system is the direct equivalent for the small business DOT was built for, plus it includes features DOT never had (AI Voice Agent, native Teams integration, mobile and desktop apps). See our Telstra DOT alternative guide for the migration steps.

Does SIPcity work with Microsoft Teams?

Yes. SIPcity provides Microsoft Teams Direct Routing, which makes your existing Teams clients fully featured business handsets. This replaces Telstra Calling for Office 365 (TCO365), which is being retired on 30 November 2026.

Is SIPcity Australian-owned?

Yes. SIPcity is 100% Australian-owned, with all infrastructure and support staff based in Australia. The network runs on-shore and call data does not leave Australian jurisdiction. See the about SIPcity page for the full story.

What is the contract length with SIPcity?

Month-to-month. There is no minimum term, no early termination fee, and no exit cost. You can leave at any time and take your numbers with you.

How long does it take to switch from Telstra?

Self-service sign-up is 5 minutes. Number porting averages 5–10 business days. Most customers are fully live, with all call flows configured and tested, within two weeks of signing up.

Ready to make the move?

So, if you are on a Telstra SMB product facing shutdown, the phone bill comparison tool shows what you would save by switching. If you would prefer to talk to a human, contact our Australian team and we will walk you through the migration step by step.