If your business relies on Telstra for internet connectivity, you’re working with Australia’s largest telecommunications provider and their industry-leading network infrastructure. However, when it comes to business voice services, Telstra’s offering has become increasingly complex and confusing in 2025.
Telstra has undergone significant changes to their business voice portfolio, discontinuing several products while pushing customers toward enterprise-grade solutions that may not suit smaller businesses. Understanding what’s actually available, and what additional licensing you’ll need, can feel like navigating a maze.
SIPcity provides a refreshingly clear Telstra business voice alternative: specialist VoIP services that work seamlessly over your existing Telstra internet connection, without the complexity, enterprise pricing, or mandatory Microsoft ecosystem lock-in.
What Happened to Telstra Business SIP?
Many Australian businesses were familiar with Telstra Business SIP as an accessible, carriage-agnostic voice solution. However, Business SIP is no longer available for new customers as of 30 May 2025. Existing customers can continue using the service on current terms, but Telstra has effectively shut the door to new small and medium businesses seeking this straightforward VoIP option.
This discontinuation has left many businesses searching for alternatives, particularly those who appreciated the simplicity of Business SIP’s approach: use any internet connection (including non-Telstra providers), connect your existing PBX, and manage everything through a straightforward online portal.
Telstra’s Current Business Voice Options
For businesses seeking Telstra voice services today, the landscape looks quite different:
Telstra SIP Connect (Enterprise Focus)
SIP Connect remains available but is positioned as an enterprise solution for medium to large organisations with fully-featured PBX systems. Pricing starts from $108 per month for 36 months, supporting 2-8 voice lines for Business Line packages or 5+ lines with 100+ direct in-dial numbers for Business Trunks packages.
Number pricing adds further costs: individual SIP numbers cost $4.00 per month, while 100-number ranges start at $62.50 monthly for the initial range and $30.00 for subsequent ranges. For many small businesses, these enterprise-focused requirements and pricing structures represent significant overkill.
Microsoft Operator Connect with Telstra (Cloud-Based with Ecosystem Lock-In)
Telstra now primarily pushes Microsoft Operator Connect as their flagship unified communications solution. This service transforms Microsoft Teams into a complete business phone system with PSTN calling capabilities.
However, this approach requires substantial additional investment beyond your internet service:
- Microsoft 365 Subscription (includes Teams application)
- Microsoft 365 Phone System Licence (the backend telephony infrastructure)
- Telstra Teams Calling Plan (PSTN connectivity to landline and mobile networks)
Each layer adds cost and complexity. You’re not simply adding voice to your existing setup, you’re committing to Microsoft’s entire ecosystem and paying for multiple licensing components. For businesses not already heavily invested in Microsoft 365, this represents a significant departure from straightforward business telephony. And there are inherent weaknesses in Microsoft’s voice solution including local calls possibly being traversed globally causing latency, jitter and dropped calls.
Telstra Calling for Office 365 (Being Phased Out)
Telstra Calling for Office 365 was discontinued for new customers on 1 November 2024, with complete withdrawal scheduled for 30 November 2026. Previous pricing ranged from $8 per user monthly for Standard Calling to $18 per user for Premium Calling, plus the mandatory Microsoft 365 licensing requirements.
Even businesses currently using this service face transition decisions within the next year, likely being pushed toward Operator Connect or alternative providers.
The Hidden Costs of Telstra’s Approach
Beyond the direct licensing fees, Telstra’s current voice strategy imposes several additional burdens on Australian SMEs:
Ecosystem Lock-In
Microsoft Operator Connect ties your business communications directly to Microsoft’s ecosystem. If you’re not already using Microsoft 365 Enterprise, you’ll need to adopt it purely for voice functionality. This creates vendor dependency that extends far beyond telecommunications.
Enterprise Pricing for SME Needs
SIP Connect’s enterprise focus means small businesses pay for capacity and features they may never use. The 100-number range minimums and higher channel counts are designed for organisations significantly larger than most Australian SMEs.
Licensing Complexity
Understanding and managing multiple Microsoft licences (Teams, Phone System, Calling Plan) plus Telstra connectivity charges creates administrative overhead. You’ll need IT expertise simply to understand your monthly telecommunications bill.
Support Complexity
When issues arise, determining whether they’re Microsoft problems, Telstra connectivity issues, or integration challenges becomes a technical support nightmare involving multiple vendors. SIPcity has encountered this first hand with customers’ using MS Teams licensing for calling and need to switch to a more reliable and local solution, like MS Teams Direct Routing which SIPcity provides.
Why SIPcity Is the Clearer Alternative
SIPcity delivers specialist business voice services that work perfectly over your Telstra internet connection—or any other Australian internet provider—without the enterprise complexity or ecosystem lock-in.
Straightforward Service Model
There’s no need for multiple Microsoft licences, enterprise-grade capacity minimums, or complex integration projects. SIPcity provides Cloud PBX functionality, VoIP and SIP Trunk connectivity, and number porting in a single, transparent service package designed specifically for Australian business needs.
No Ecosystem Lock-In
Your choice of collaboration tools, productivity software, and cloud services remains entirely independent of your voice provider. Whether you use Microsoft 365, Google Workspace, or any other platform, SIPcity voice services integrate seamlessly without dictating your entire technology stack.
Predictable, Transparent Pricing
SIPcity’s pricing is designed for Australian SMEs: clear monthly costs with no hidden licensing layers, no enterprise capacity minimums, and no surprise charges for basic functionality that should be included as standard.
Australian Expertise and Support
When you contact SIPcity support, you’re speaking with telecommunications specialists who understand business VoIP thoroughly. There’s no confusion about whether your issue sits with your internet provider, your Microsoft licensing, or your calling plan—SIPcity owns the entire voice experience and resolves issues directly.
Specialist Voice vs Bundled Complexity
Telstra’s approach reflects a common pattern among large telecommunications providers: pushing customers toward bundled enterprise solutions that generate maximum recurring revenue through multiple licensing layers. For Telstra, voice has become an add-on to Microsoft ecosystems rather than a standalone, excellently-delivered service.
SIPcity maintains focus on what we do best: business voice communications. We don’t require you to adopt entire software ecosystems. There are no enterprise minimums on SME customers, and there is no need to create complexity where simplicity serves better.
This specialisation means deeper expertise in voice quality, more responsive support for telephony-specific challenges, and pricing structures that reflect actual SME usage patterns rather than enterprise licensing models.
Your Telstra Internet Doesn’t Dictate Your Voice Provider
Many businesses assume that using Telstra for internet means they must use Telstra for voice—or that changing voice providers requires changing internet providers. Neither is true.
SIPcity voice services work seamlessly over Telstra internet connections, Aussie Broadband, Optus, or any other Australian nbn® provider – including SIPcity who provides nbn® Business Internet. You maintain complete freedom to choose your preferred internet provider for your connectivity needs while selecting the best voice provider for your communications requirements.
If Telstra delivers excellent internet service for your business, keep it. Simply add SIPcity for specialist voice functionality without the complexity, ecosystem lock-in, or enterprise pricing of Telstra’s current voice portfolio.
Real Needs vs Enterprise Marketing
Telstra’s discontinuation of Business SIP and emphasis on Operator Connect represents a strategic shift away from straightforward business telephony toward enterprise unified communications. For businesses seeking reliable, well-supported business phones that simply work, this creates an uncomfortable choice: accept unnecessary complexity or find a specialist alternative.
Australian SMEs don’t need unified communications platforms designed for multinational corporations. They need excellent voice call quality, reliable service, responsive Australian support, and transparent pricing. SIPcity delivers these fundamentals, including it’s own UCaaS solution, without imposing enterprise architectures on businesses that would be better served by focused, specialist solutions.
Australian Business, Australian Focus
As an Australian-founded and operated company, SIPcity understands precisely what local SMEs require from business telecommunications. We’re not pushing global enterprise strategies onto Australian small businesses. We’re not requiring ecosystem adoption to access basic telephony functionality.
SIPcity provides dedicated business VoIP expertise with genuine Australian support, designed specifically for the Australian market. Our team understands nbn® infrastructure, Australian numbering conventions, local regulatory requirements, and the practical needs of Australian businesses.
Making the Transition Simple
Moving from Telstra voice services—or avoiding their complex current offerings—is straightforward with SIPcity:
- Assessment: We evaluate your current setup, call volumes, and specific requirements
- Design: We help you configure appropriate Cloud PBX features and capacity for your needs
- Number Porting: We manage the complete porting process for your existing numbers
- Implementation: We assist you with technical setup, testing, and deployment
- Training: We ensure your team understands the new system thoroughly
- Support: Ongoing Australian support for any questions or issues
Throughout this process, your Telstra internet connection remains unchanged. You’re simply transitioning voice services to a specialist provider while maintaining excellent internet connectivity.
Clarity Over Complexity
In summary, Telstra’s current business voice strategy creates unnecessary complexity for Australian SMEs. Discontinued products, multiple licensing requirements, ecosystem dependencies, and enterprise-focused solutions leave smaller businesses searching for simpler alternatives.
SIPcity provides that Telstra business voice alternative: specialist VoIP services designed for Australian business needs, transparent pricing without licensing layers, and genuine expertise in business communications. Keep your Telstra internet if it serves you well, but reclaim simplicity and value for your business voice services.
Contact SIPcity today to discover how our specialist business voice platform can deliver better value and clearer service while working seamlessly over your existing Telstra internet connection. Speak with our Australian team to arrange a consultation and learn exactly how much you can save without the complexity of enterprise unified communications platforms. Call us on 1800 150 686!