Microsoft Teams Phone for Government Contractors: A Secure PSTN Calling Solution

Is your VoIP solution ITAR and DFARS compliant? If not, you could end up paying penalties or, worse, losing your defense contracts altogether. 

With increasing CMMC 2.0 enforcement and DoD security mandates, you need a secure, compliant voice communication tool. Microsoft Teams Phone for Government Contractors offers a secure, compliant alternative to classic VoIP services.

In this blog post, we’ll explore how Microsoft Teams Phone enables secure PSTN calling for government contractors and why Direct Routing through Atlantech Online is the best solution.

Why Government Contractors Need a Secure PSTN Solution

The Compliance Challenge

Government agencies and contractors working with the Department of Defense (DoD) must meet stringent security and compliance regulations when handling Controlled Unclassified Information (CUI) and other sensitive data.

Key compliance mandates include:

• CMMC 2.0 (Cybersecurity Maturity Model Certification): Requires contractors to implement strict security controls for IT systems, including communication tools.
• ITAR (International Traffic in Arms Regulations): Requires that all communications containing defense-related data remain within U.S.-controlled infrastructure.
• DFARS 7012 (Defense Federal Acquisition Regulation Supplement): Mandates that DoD contractors use FedRAMP High-approved communication systems to protect CUI.

Despite these requirements, many contractors still rely on standard VoIP solutions that are not designed for compliance, exposing their organizations to significant risks.

Risks of Using Non-Compliant Calling Solutions

Data Sovereignty Risks – Many VoIP providers store call logs and metadata outside the U.S., violating ITAR regulations.

Lack of Encryption – Standard VoIP services do not protect voice communications with the level of security required for CUI.

Contract Loss Risks – Failing to use compliant communication tools can result in disqualification from DoD contracts and lost business opportunities.

The Need for Microsoft Teams Phone for Government Contractors

Built for Secure, Encrypted PSTN Calling – Ensures all voice data is encrypted and stored in U.S.-based GCC High cloud infrastructure.

Hosted Within Microsoft’s GCC High Cloud Environment – Meets DoD security requirements and ensures data sovereignty.

Seamless Integration with Microsoft 365 GCC High Apps – Works with Outlook, SharePoint, OneDrive, and Azure to enable fully secure collaboration.

What Is Microsoft Teams Phone for Government Contractors?

Definition & Overview

Microsoft Teams Phone enables organizations to make and receive PSTN calls securely within Microsoft Teams, ensuring compliance with CMMC, ITAR, and DFARS mandates.

For government contractors, Teams Phone is not just another VoIP solution — it’s a fully secure communication system designed to meet the strictest DoD cybersecurity standards.

Key Features for Government Agencies & Contractors

• Direct Routing for Full Security Control – Allows organizations to route calls through an approved government VoIP provider for maximum security and compliance.
• Encrypted Calling Within Microsoft 365 GCC High – Ensures all calls remain secure and protected against unauthorized access.
• U.S.-Based Data Centers for ITAR & DFARS Compliance – All call data is stored in FedRAMP High-certified U.S. government cloud infrastructure.
• Seamless Voice, Video, and Messaging Integration – Enables secure communication across multiple channels within the Microsoft ecosystem.
  
  

Why It’s Different from Standard Microsoft Teams Calling

Standard Teams Calling does not meet GCC High compliance requirements. The commercial version of Teams Phone also does not meet DoD security mandates.

Direct Routing is required for Microsoft Teams in a government-compliant environment. Unlike standard Teams Calling, GCC High requires Direct Routing to enable secure PSTN connectivity.

Direct Routing: The Only Option for GCC High Teams Calling

What Is Direct Routing?

Since Microsoft Calling Plans and Operator Connect are not available for GCC High, Direct Routing is the only method for enabling secure, compliant PSTN calling.

Direct Routing allows government contractors to connect Microsoft Teams Phone to the PSTN through a government-approved VoIP provider, ensuring full encryption, security, and regulatory compliance.

How Direct Routing Works for Government Contractors

• Microsoft Teams Phone System – Acts as the central hub for secure voice communications.
• Session Border Controller (SBC) – Encrypts and secures all voice traffic to meet ITAR and DFARS standards.
• GCC High-Approved VoIP Provider (Like Atlantech Online) – Connects Teams Phone to the PSTN securely and ensures compliance.
  
  

Security & Compliance Benefits

• End-to-End Encryption for MS Teams to MS Teams Calls – Ensures that all internal and external voice traffic is protected.
• 100% U.S.-Based Infrastructure – Guarantees full compliance with ITAR & DFARS requirements.
• Full Control Over Call Routing, Security Policies, and Access Controls – Gives organizations the ability to customize security settings based on their compliance needs.
  
  

Why Government Contractors Should Choose Direct Routing Over Other Options

• Only Solution Available for GCC High – Microsoft does not offer Calling Plans or Operator Connect for GCC High.
• Complete Control Over Security Settings – Allows organizations to implement their own encryption, security policies, and call routing rules.
• Scalable for Large Government Contractors – Supports multi-location deployments and remote workers while maintaining strict compliance.
  
  

Key Benefits of Microsoft Teams Phone for Government Contractors

1. Compliance with DoD Security Standards

• Fully CMMC 2.0, ITAR, DFARS, and FedRAMP High compliant.
• Ensures voice communication security for handling Controlled Unclassified Information (CUI).
  
  

2. Integrated Voice, Video & Messaging for Government Teams

• Combines PSTN calling, Teams messaging, and video conferencing into one secure platform.
• Reduces reliance on separate, non-compliant VoIP solutions.
  
  

3. Cost Savings & Scalability

• Eliminates legacy PBX costs while offering a scalable, cloud-based alternative.
• Supports multi-location deployments and remote workers while keeping security intact.
  
  

How Atlantech Online Provides a Compliant Microsoft Teams Phone Solution for Government Agencies & Contractors

Why Choose Atlantech for GCC High Direct Routing?

At a high level:

• 100% DoD-compliant Microsoft Teams calling solution
• Seamless number porting & migration support
• Transparent pricing with no surprise fees
• Full deployment support from PMP-certified specialists
  
  

Atlantech Online’s Key Differentiators

1. All-in-One Solution – no need to purchase, configure, or maintain SBCs yourself.
2. Smooth & Fast Deployment – PMP-certified staff prevent long setup times and configuration issues.
3. Hands-On Compliance Support – Atlantech ensures full adherence to DoD security requirements.
4. Expert Government VoIP Provider – Trusted by DoD suppliers & government agencies.

“There are two key issues that we are hearing complaints about:

• Lack of support in getting the service set up.
• The number porting process from our competition is painful.  

Our team heard these complaints and addressed them when building out our process. We attempt to negate these issues with complete documentation and hand-holding, as well as a very smooth porting process, which we’ve honed over multiple decades providing calling solutions.” - Ed Fineran, President, Atlantech Online

Upgrade to a Secure Microsoft Teams Phone System for Government Contractors

Government contractors must use compliant PSTN calling solutions to avoid contract loss & security risks. Microsoft Teams Phone for GCC High is the only secure, compliant solution that integrates seamlessly with Microsoft 365 GCC High.

If you’re migrating to a GCC High M365 license, you will no longer be able to get phone service through Microsoft, only through a Direct Routing provider like Alantech Online.

Learn more about our Teams Calling & Audio Conferencing Solution for GCC High and schedule a free consultation today!