MS-102Chapter 3 of 104Objective 1.3

Teams Administration

This chapter covers Microsoft Teams administration, focusing on the configuration, management, and troubleshooting of Teams within a Microsoft 365 tenant. For the MS-102 exam, Teams administration is a significant topic, appearing in roughly 10-15% of questions across domains like Tenant Management (Objective 1.3) and Security. You must understand how to deploy and manage Teams policies, voice services, and compliance features. This chapter provides the deep technical knowledge needed to configure Teams correctly and avoid common exam traps.

25 min read
Intermediate
Updated May 31, 2026

Teams Administration as a Corporate HQ Switchboard

Imagine a large corporate headquarters with a legacy PBX phone system that handled all internal and external calls. The company decides to modernize by deploying a new digital switchboard that integrates with the old PBX, supports video calls, and allows employees to use their mobile devices as extensions. The IT team must configure the new switchboard: they set up user extensions (Teams users), define dial plans (number translation rules), configure auto attendants (call routing), and set up trunks to the PSTN (Direct Routing). They also manage permissions—who can transfer calls, record conversations, or join conference bridges. The switchboard logs all calls for compliance. If an employee leaves, IT deactivates their extension and reassigns it. Now, the same goes for Teams: you manage users, policies (messaging, meetings, calling), phone numbers, voice routing, and compliance recording. The Microsoft Teams Admin Center is the switchboard console, PowerShell is the scripting tool for bulk changes, and the PSTN connectivity (Calling Plans, Direct Routing, Operator Connect) is the trunking to the outside world. Misconfiguring a dial plan is like misrouting a trunk—calls fail or go to the wrong department.

How It Actually Works

What is Teams Administration?

Microsoft Teams is the hub for teamwork in Microsoft 365, combining chat, meetings, calling, and collaboration. Teams administration involves managing the entire lifecycle of Teams services, including user provisioning, policy assignment, voice configuration (PSTN connectivity), and compliance. The primary tools are the Microsoft Teams Admin Center (TAC) and PowerShell (Teams PowerShell Module).

Why Teams Administration Exists

Teams is a complex service that integrates with Exchange Online, SharePoint Online, OneDrive for Business, Azure AD, and Phone System. Without proper administration, organizations face security risks, compliance violations, and poor user experience. The exam tests your ability to configure Teams correctly, especially around voice and policy management.

How Teams Administration Works Internally

Teams administration operates through a combination of Azure AD, Teams services, and policy objects. Every user must have a valid Teams license (standalone or as part of Microsoft 365 E3/E5). Policies control user behavior and are assigned either directly to a user or via a group (group policy assignment). The policy assignment hierarchy is: user-level assignment overrides group-level assignment, which overrides global (org-wide) default.

Key components: - Teams Policies: Messaging, Meeting, Calling, and App Permission policies. Each policy type has dozens of settings. For example, a Messaging Policy controls whether users can delete chat messages, use GIFs, or set message read status. - Voice Policies: Dial plans (normalization rules), Calling Policies (call forwarding, simultaneous ringing), and Voice Routing Policies (for Direct Routing). - Phone Number Management: Assigning, releasing, and porting phone numbers for users and call queues/auto attendants. - Compliance: Retention policies, eDiscovery, legal hold, and communication compliance for Teams data. - Guest Access: Allowing external users to join teams and channels.

Default Values and Timers

Meeting Policy: Default allow meeting recording (for users with E5 or Teams Premium), default lobby for anonymous users.

Messaging Policy: Default 30-day message retention (but can be set to indefinite).

Dial Plan: Normalization rules are applied in order; if a number matches more than one rule, the first match wins.

Call Park: Timed out after 10 minutes of parking; if not retrieved, call goes back to the original attendant.

Call Queue: Overflow and timeout handling (e.g., after 30 seconds).

Direct Routing: SIP trunk with TLS 1.2 required, SRTP for media encryption.

Configuration and Verification Commands

Using Teams PowerShell:

# Get all Teams users
Get-CsOnlineUser

# Assign a policy to a user
Grant-CsTeamsMessagingPolicy -Identity "user@domain.com" -PolicyName "RestrictedMessaging"

# Get all messaging policies
Get-CsTeamsMessagingPolicy

# Create a new dial plan
New-CsDialPlan -Identity "USDialPlan" -Description "US Dial Plan" -NormalizationRules @{Name="USNorthAmerica"; Pattern='^\+1(\d{10})$'; Translation='+1$1'}

# Assign dial plan to a user
Grant-CsDialPlan -Identity "user@domain.com" -PolicyName "USDialPlan"

Interaction with Related Technologies

Exchange Online: Teams chat data is stored in Exchange Online mailboxes for eDiscovery. Meeting recordings are stored in OneDrive/SharePoint.

SharePoint Online: Files shared in channels are stored in SharePoint sites.

OneDrive for Business: Private chat files and meeting recordings are stored in user's OneDrive.

Azure AD: Teams uses Azure AD for authentication and user identities. Group membership drives team membership.

Phone System: Provides PBX capabilities; requires a Calling Plan (Microsoft-provided PSTN) or Direct Routing (third-party SBC).

Power Platform: Power Automate flows can integrate with Teams (e.g., adaptive cards).

Key Exam Numbers

Maximum members in a team: 25,000 (including guests)

Maximum teams per user: 1,000 (but recommended less)

Maximum channels per team: 200 (including standard, private, and shared)

Maximum members in a private channel: 250

Maximum meeting size: 1,000 participants (with Teams Premium up to 20,000 view-only)

Retention period for deleted teams: 30 days (soft delete)

Call Park orbit range: 10-99 (customizable)

Licensing Requirements

Teams license: Included in Microsoft 365 Business Basic, Standard, Premium, E3, E5, and A3/A5.

Phone System: Requires a Phone System add-on license (included in E5).

Calling Plans: Requires Phone System license + Domestic or International Calling Plan add-on.

Direct Routing: Requires Phone System license; SBC must be certified.

Teams Premium: Additional license for advanced features like intelligent recap, custom meeting templates, and watermarking.

Common Misconfigurations

Dial Plan: Incorrect normalization rules cause calls to fail. For example, if a rule doesn't add +1 for US numbers, outbound calls may be treated as local extensions.

Emergency Calling: Must configure emergency addresses for Calling Plans; Dynamic Emergency Calling for Direct Routing requires additional setup.

Call Queue Overflow: If overflow is set to disconnect, callers hear a busy tone instead of being redirected to voicemail.

Meeting Recording: If recording policy is not set, users may not have the option to record (requires Teams Premium or E5).

Verification and Troubleshooting

Test dial plan: Use Test-CsDialPlan to see how a number is translated.

Check user policy assignments: Get-CsOnlineUser -Identity user@domain.com | fl *policy*

Check call quality: Use Call Analytics in TAC or the Microsoft Call Quality Dashboard (CQD).

Diagnose PSTN issues: Use Get-CsOnlineDialInConferencingUser for dial-in conferencing.

Compliance and eDiscovery

Teams chat messages (including private chats and channel messages) are retained in Exchange Online mailboxes. To retain data for eDiscovery, use retention policies or litigation hold. Note that Teams data is stored in a hidden folder in the mailbox; you can search it using Content Search in Security & Compliance Center.

Walk-Through

1

Plan Teams Licensing and Policies

Before deploying Teams, plan which licenses are needed: Teams (included in M365), Phone System (add-on or E5), Calling Plans (add-on), and Teams Premium (add-on). Define policy requirements: which users need restricted messaging, who can record meetings, and how calls are routed. Create custom policies in TAC or PowerShell. For example, create a 'NoGIF' messaging policy and assign it to interns. Use group policy assignment to automatically apply policies based on Azure AD groups.

2

Configure User Provisioning and Teams Creation

Ensure users are licensed for Teams. You can bulk-assign licenses via Microsoft 365 Admin Center or PowerShell. Decide who can create teams: by default, all users can create teams, but you can restrict this using a Teams policy (setting 'Allow user to create teams' to Off). For large organizations, create a 'Teams Creator' security group and assign a custom policy to that group. Enable guest access if needed: toggle on in TAC under Org-wide settings.

3

Set Up Voice and PSTN Connectivity

Choose PSTN connectivity: Microsoft Calling Plans (easiest, but limited to certain countries) or Direct Routing (more flexible, requires on-premises SBC). For Calling Plans, purchase phone numbers from Microsoft and assign them to users. For Direct Routing, configure a certified SBC (e.g., AudioCodes, Ribbon) with TLS 1.2, configure trunks, and define voice routing policies. Test dial plans with Test-CsDialPlan. Configure emergency calling with emergency addresses.

4

Manage Teams Policies and Settings

Assign policies to users or groups. Use group policy assignment for scalability: create an Azure AD group, assign a policy to the group, and users inherit the policy when they sign in. Override at user level if needed. Common policies: Meeting Policy (allow recording, lobby settings), Messaging Policy (allow GIFs, read receipts), Calling Policy (call forwarding, simultaneous ringing). Use PowerShell to export and import policies for migration.

5

Configure Compliance and Retention

Set up retention policies for Teams messages: you can retain chat messages for a specific period (e.g., 1 year) or delete them after a period. Use the Microsoft Purview compliance portal to create retention policies that apply to Teams channel messages and private chats. Enable eDiscovery by ensuring that Teams data is searchable via Content Search. For communication compliance, create policies to monitor offensive language or sensitive information in Teams.

What This Looks Like on the Job

Scenario 1: Large Enterprise Direct Routing Deployment

A multinational corporation with 10,000 employees wants to use Teams as their primary phone system. They have existing on-premises PBXs and SIP trunks. They choose Direct Routing to preserve their existing PSTN contracts. The IT team deploys two AudioCodes Mediant SBCs in a high-availability pair, each connected to a SIP trunk. They configure TLS 1.2 and mutual TLS authentication with Microsoft's Direct Routing endpoints. They create voice routing policies that route calls based on number patterns: +1 for US, +44 for UK. They also configure emergency calling with dynamic E911 using the user's location from the network. The challenge is ensuring that all users have correct emergency addresses. They use PowerShell to bulk-assign phone numbers and dial plans. Performance: each SBC handles up to 200 concurrent calls; they monitor call quality using CQD.

Scenario 2: Small Business with Calling Plans

A 50-employee marketing agency uses Microsoft 365 Business Basic but wants to add voice. They purchase Phone System and Domestic Calling Plans for all users. They assign phone numbers from Microsoft's inventory. Because they are in the US, they use the default dial plan. They configure call queues for sales and support, and an auto attendant to route callers. The problem: they initially set the call queue overflow to 'disconnect', causing callers to get a busy signal during peak hours. They change it to 'redirect to voicemail' after complaints. They also set up call recording for compliance using Teams Premium licenses.

Scenario 3: Healthcare Organization Compliance

A hospital with 5,000 staff uses Teams for internal communication. They must comply with HIPAA. They configure retention policies to keep all chat messages for 7 years. They enable communication compliance to detect protected health information (PHI) in messages. They restrict guest access because of patient data. They also configure Teams to use audio conferencing with dial-in numbers. The challenge: they need to ensure that Teams data is stored in the correct geo-location. They use Microsoft 365 Multi-Geo to store Teams data in the US region only. They also restrict file sharing to internal users only via a SharePoint policy.

How MS-102 Actually Tests This

MS-102 Exam Focus: Teams Administration

The MS-102 exam tests Teams administration under Objective 1.3 (Tenant Management) and also in Security and Compliance domains. Key areas:

- Policy Management: Know the difference between user-level and group policy assignment. Understand that group policy assignment takes effect on next sign-in. Know that global policy applies to all users unless overridden. - PSTN Connectivity: Understand the three options: Calling Plans (Microsoft provides PSTN), Direct Routing (third-party SBC), and Operator Connect (carrier-managed). Know licensing requirements: Phone System license for all, plus Calling Plan add-on for Calling Plans. - Emergency Calling: For Calling Plans, you must assign an emergency address. For Direct Routing, you can use dynamic emergency calling. - Dial Plans: Know that normalization rules are regex-based and processed in order. The exam may ask what translation results from a given rule. - Common Wrong Answers: - 'Group policy assignment takes effect immediately' – Wrong, it takes effect at next sign-in. - 'Direct Routing does not require an SBC' – Wrong, an SBC is required. - 'Teams data is stored only in Exchange' – Wrong, chat is in Exchange, files in SharePoint/OneDrive. - 'Calling Plans include Phone System license' – Wrong, Phone System is separate. - Numbers to Memorize: Max team members (25,000), max channels per team (200), max private channel members (250), retention for deleted teams (30 days). - Exam Traps:

Questions that ask 'Which policy controls X?' – e.g., 'Which policy controls whether users can record meetings?' Answer: Meeting Policy.

Questions about licensing: 'A user needs to make PSTN calls. What license do they need?' Answer: Phone System license + Calling Plan add-on (or Direct Routing).

Questions about compliance: 'Where are Teams chats stored for eDiscovery?' Answer: Exchange Online mailbox (hidden folder).

How to Eliminate Wrong Answers: Use the underlying mechanism. For example, if a question asks about policy assignment timing, remember that group policy assignment is not immediate. If a question asks about PSTN connectivity, recall that Direct Routing requires an SBC and configuration.

Key Takeaways

Teams policies are assigned at user or group level; group assignment takes effect at next sign-in.

Phone System license is required for any PSTN connectivity; Calling Plans are an add-on.

Direct Routing requires a certified SBC and TLS 1.2; it does not need a Calling Plan.

Teams chat data is stored in Exchange Online for eDiscovery; files in SharePoint/OneDrive.

Maximum team members: 25,000; maximum channels per team: 200.

Deleted teams are recoverable for 30 days.

Meeting recording requires Teams Premium or E5 license.

Emergency calling requires emergency addresses for Calling Plans; dynamic for Direct Routing.

Easy to Mix Up

These come up on the exam all the time. Here's how to tell them apart.

Microsoft Calling Plans

Microsoft provides PSTN services directly.

No on-premises hardware required.

Available in limited countries/regions.

Simpler setup: assign phone number from Microsoft inventory.

Calling Plan add-on required on top of Phone System license.

Direct Routing

Use existing PSTN carrier via certified SBC.

Requires on-premises SBC (hardware or virtual).

Available in any country where SBC can connect to Microsoft.

More complex: configure SBC, trunks, voice routing policies.

Requires Phone System license but no Calling Plan add-on.

Watch Out for These

Mistake

Teams data is stored in a separate Teams database, not in Exchange or SharePoint.

Correct

Teams chat messages are stored in Exchange Online mailboxes in a hidden folder. Files are stored in SharePoint Online (for channels) or OneDrive for Business (for private chats). Meeting recordings are stored in OneDrive/SharePoint.

Mistake

Group policy assignment applies instantly to all users in the group.

Correct

Group policy assignment takes effect at the user's next sign-in, not instantly. However, user-level policy assignment takes effect within minutes.

Mistake

Direct Routing does not require any additional licensing beyond a Teams license.

Correct

Direct Routing requires a Phone System license for each user. The SBC is an additional hardware/software cost.

Mistake

Calling Plans include a Phone System license.

Correct

Calling Plans are an add-on to Phone System. You must have a Phone System license (included in E5 or as an add-on) before purchasing a Calling Plan.

Mistake

You can use any SIP trunk with Direct Routing without certification.

Correct

Microsoft requires a certified SBC from a validated partner. Uncertified SBCs may not work or may cause quality issues.

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Frequently Asked Questions

What is the difference between a Teams policy and a Teams setting?

A Teams policy is a collection of settings that control user behavior (e.g., messaging, meetings). Policies are assigned to users or groups. A Teams setting is an org-wide configuration that applies to all users (e.g., guest access, file sharing). Policies override settings for specific users.

How do I assign a Teams policy to multiple users at once?

Use group policy assignment: create an Azure AD group, assign the policy to the group via TAC or PowerShell using `Grant-CsGroupPolicyAssignment`. Users in the group inherit the policy at next sign-in. Alternatively, use PowerShell to loop through users and assign policies individually.

Can I use Direct Routing without a Calling Plan?

Yes, Direct Routing is an alternative to Calling Plans. It requires a Phone System license for each user but does not require a Calling Plan add-on. You connect your own PSTN infrastructure via a certified SBC.

Where are Teams meeting recordings stored?

Meeting recordings are stored in the organizer's OneDrive for Business (for non-channel meetings) or in the SharePoint site of the channel (for channel meetings). They are in MP4 format and have a .mp4 extension.

How long are deleted teams retained?

Deleted teams are retained for 30 days. During this period, the team can be restored by an admin. After 30 days, the team and its data are permanently deleted.

What is the maximum number of members in a private channel?

The maximum number of members in a private channel is 250. This is lower than the team maximum of 25,000.

Do I need a license for guest users in Teams?

Guest users do not require a paid license; they use a free Azure AD guest account. However, they must have a Microsoft account or Azure AD account. Guests are included in the 25,000 member limit.

Terms Worth Knowing

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